SAMPLE FUNDRAISING POLICY AS OF MAY 21, 2010

NOTE ON THE SCOPE OF THIS MATERIAL

This material is designed to provide general guidance about an aspect of nonprofit corporate governance in the specific and limited context of the governance questions contained in the new IRS Form 990 (published b the IRS in !00" and applicable to 990 filers based on a !009#!0$$ filing ear phase#in period depending on the si%e of the nonprofit&' It is intended to provide some general guidance on the establishment of processes and(or policies to address a specific governance question in the Form' The sub)ect matter of that question implicates a broad arra of legal and practical issues ranging far be ond the immediate sub)ect matter of the question itself' This material ma address some of those issues but does *+T attempt to review them comprehensivel and is *+T intended to be relied on for guidance on how the should be addressed in an specific situation' ,hether or not a nonprofit organi%ation adopts a specific governance process or polic (or modifies an existing one&- either in response to the disclosure requirements of the new IRS Form 990 or to change its governance practices for other reasons is a matter to be carefull considered b that organi%ationwith input from its board and advisors and evaluation of its specific circumstances' The IRS has explicitl stated that adoption of the policies and practices about which the new Form 990 as.s is not mandator although the IRS has also indicated that it attaches significance to the manner in which all tax#exempt nonprofit organi%ations govern themselves' These sample policies are not intended to suggest that the polic is appropriate for ever nonprofit organi%ation nor that- if a polic on that topic is determined to be appropriate- the formulations in the samples necessaril fit the needs of an individual nonprofit organi%ation' / customi%ed approach- with outside professional advice- is recommended' /ccordingl - this material is intended as general information for legal practitioners advising nonprofit organi%ations as to their governance and does not constitute legal advice for an particular nonprofit organi%ation' For more information- see the related Form 990 0olic Series 1emorandum at2 http2((www'publiccounsel'org(tools(assets(files(Fund1emo'pdf' /lthough the sub)ect matter of this material ma have relevance to nonprofit organi%ations that are not required to file informational tax returns with the IRS or are permitted to file on an IRS form other than Form 990- the focus of this material is 990 filers' ,hile this material is meant to appl to Form 990 filers who are exempt under Section 30$(c& of the Internal Revenue 4ode- certain portions of this material ma be applicable onl to Section 30$(c&(5& organi%ations' In addition- although this material ma be of assistance with respect to nonprofit organi%ations that are not sub)ect to oversight under 4alifornia lawthere ma be portions of this material that are relevant onl to nonprofits organi%ed under- or (b reason of their 4alifornia#related activities& otherwise sub)ect to- 4alifornia law' The reader has permission to cop - modif and otherwise use this polic for the reader6s or his or her client6s use' /ll other rights are reserved b the cop right holder'

FUNDRAISING POLICY The 7oard of 8irectors of +R9/*I:/TI+* recogni%es that the organi%ation engages in fundraising and solicitation activit from time to time' In order to compl with federal- state and local laws- as well as applicable ethical norms regarding fundraising activit - the 7oard has established this fundraising polic ' /' +;<RSI9=T > /ll fundraising activit for +R9/*I:/TI+* is supervisedcoordinated and directed b ?+FFI4<(+FFI4<R(ST/FF@' The 7oard ?or A !0$$ 0atric. Sternal' /ll rights reserved'

4ommittee of the 7oard@ shall annuall +R9/*I:/TI+*'

review all fundraising activit

7' BS< +F FB*8R/ISI*9 0R+F<SSI+*/CS # Third parties not directl affiliated with the organi%ation must have written permission from ?+FFI4<R(ST/FF@ prior to an solicitation on behalf of +R9/*I:/TI+*' Third part fundraisers engaged b +R9/*I:/TI+* must be registered with appropriate state and local authorities- and their representation of the organi%ation must be evidenced b a written agreement approved b +R9/*I:/TI+*' 4' TRBT= /*8 /44BR/4D $' /ll solicitation and fundraising materials and other communications to donors and the public shall clearl identif the +R9/*I:/TI+* and be accurate and truthful' !' ?+FFI4<R(ST/FF@shall review fundraising or solicitation materials prior to publication for2 a' material omissions or exaggerations of fact- use of misleading photographs- or an other communication which would tend to create a false impression or misunderstandingE and b' an statements or content that would tend to create unrealistic donor expectations of what the donor6s gift will actuall accomplish' 8' 8+*+R /4F*+,C<891<*T # +R9/*I:/TI+* shall provide all donors with specific ac.nowledgments of charitable contributions- where applicable- in accordance with legal requirements for proper donor substantiation and the organi%ation6s disclosure' <' SB0<R;ISI+* /*8 TR/I*I*9 $' +R9/*I:/TI+* shall provide appropriate training and supervision of the people soliciting funds on its behalf- whether emplo ees or third part representatives- including training to attempt to avoid use of techniques that are coercive- intimidating or intended to harass potential donors' !' +R9/*I:/TI+* shall attempt to avoid accepting a gift from or entering into a contract with a prospective donor which would .nowingl place a hardship on the donor- or place the donor6s future well#being in )eopard ' F' 4+10<*S/TI+* > +R9/*I:/TI+* shall pa fundraisers no more than reasonable compensation for their services' ?+R9/*I:/TI+* shall not compensate internal or external fundraisers based on a commission or a percentage of the amount raised'@ 9' 8+*+R 0RI;/4D 0+CI4D # +R9/*I:/TI+* respects the privac of donors'

$' +R9/*I:/TI+* shall not sell or otherwise ma.e available the names and contact information of its donors- except where disclosure is required b law ?without providing them an opportunit at least once a ear to opt out of the use of their names and contact information@' !' ?+R9/*I:/TI+* shall not send mailings on behalf of other organi%ations'@ 5' +R9/*I:/TI+* shall provide a clear- prominent and easil accessible privac polic on an of its websites that tells visitors2 i' ,hat information- if an - is being collected about them and how this information will be usedE ii' =ow to access personal information collected and request correctionE iii' =ow to inform +R9/*I:/TI+* that the visitor does not wish his(her personal information to be shared outside the organi%ationE and iv' ,hat securit measures +R9/*I:/TI+* has in place to protect personal information' =' 4+10CI/*4< ,IT= C/, > In addition to an other requirements of this polic - all fundraising activities for +R9/*I:/TI+* shall be conducted in accordance with applicable law'

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