Florida 4-H Program Handbook

SECTION 5: Procedure for Handling Funds

Establishing and Maintaining a County 4-H Foundation

County 4-H foundations can be established to raise funds on the county level. Before establishing a county foundation, the following statement should be considered. Establish a foundation if no other active county 4-H organization can serve the same purpose.

To establish a 4-H foundation, one must understand the definition of a foundation and the different types of foundations. The National Foundation Center defines a foundation as " a non-governmental, non-profit organization with funds and programs managed by its own trustees and established to maintain or aid social, educational, charitable, religious or other activities serving the common welfare, primarily through the making of grants." Excluded from this definition are organizations which bear the name "Foundation", but whose primary purposes are other than the awarding of grants, such as making general appeals to the public for funds; aiding one or several named institutions; or functioning as an endowment set up for special purposes within colleges, churches or other organizations, and governed by trustees of the parent organization. The 4-H foundation is described in this exclusion and its mission is well defined.

There are several steps to be followed when establishing a foundation to ensure correct management of the program and funds.

• Seek assistance from your County and District Extension Director and State 4-H Office.
• Get copies of articles of incorporation and by-laws as guides.
• Involve and obtain commitments and support from the county 4-H advisory committee. This group should review the first draft of the by-laws both for understanding and for suggested changes.
• Consult with and involve county attorney’s office (or other friendly legal counsel) in order to keep the corporation within legal bounds of Florida Law.
• Select, appoint, and secure a Board of Directors. Suggestions of persons to serve on the board of directors would be county commissioners, local bankers, local business and organization representatives.
• Write the Articles of Incorporation and the By-Laws. Examples of these documents have been provided.
• File for the Not-For Profit charter with the Secretary of the State.
• Secure the corporate seal.
• Hold regular meetings.
• Maintain an active Board of Directors.
• Budget for program needs as defined by the County 4-H Advisory Committee. (County foundation does not determine the county youth programs.)
• Set fund-raising goals and structure to reach goals.
• Complete the IRS-990 tax return annually if total annual receipts are normally over $25,000.
• Provide for an annual audit by a CPA or a professional accountant.

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Agent Responsibility with Foundations

No agent may serve as a member or officer. Agents should assume the responsibility of:

• insuring that the foundation board meets regularly;
• the foundation’s membership is composed of the community’s top leadership;
• the foundation has built-in continuity to maintain strength and position when its leadership is weak or when agents change; and
• insuring communication between needs of the youth program (as determined by advisory council) and the programs for which the Foundation intends to raise funds.

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Maintaining an Existing 4-H Foundation

As a new agent in a county, you may have a Foundation but not have all the knowledge or files you need. Here are the often asked questions in these circumstances and answers to direct you to the next step.

How do I know if the Foundation is incorporated?

If incorporated, you should have copies of your original incorporation documents. Another place to check is your Nonprofit Corporation Annual Report which must be completed and filed each year with the Florida Secretary of State. The fee is currently $61.25. If you have made a payment for that amount, your incorporation is up-to-date.

What if I can’t find any incorporation papers and I haven’t paid the fee for the current year?

Probably you have let the incorporation lapse, and the foundation will have to apply for incorporation again.

Does a county foundation have to be incorporated to accept donations?

No. Fund-raising on the county level fall under the "umbrella non-profit" status established through the original IRS ruling of February 9, 1973.

Then why incorporate?

It comes down to a matter of public perception. The umbrella status is difficult for most donors to understand because they are not many organizations functioning this way. There are several thousands registered non-profits in Florida, so most donors are used to giving money to an incorporated non-profit.

What’s an EIN number and why do we need one?

The Employer Identification Number is to a non-profit like a social security number is to an individual. The non-profit needs the EIN to file the Form 990, and any employee related forms. The EIN is needed in order to establish a bank account.

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