Florida 4-H Program Handbook
SECTION 5: Procedure for Handling Funds
Guidelines for 4-H Fund-Raising
All 4-H units should prepare an annual program budget to establish allocation of financial resources to fulfill program needs. To support a wide variety of 4-H programs, the volunteer organizations must raise private funds. Corporate and individual donors are more likely to support groups they know or that are visible in the community. Groups looking for additional funding should follow these steps:
- Have a viable plan for the use of the funds.
- Have a reputation within the community for organizational and fiscal responsibility.
- Ask for donations of money.
All methods of fund-raising by 4-H units are subject to the provisions of this section. All other individuals and organizations wishing to raise funds for 4-H must obtain the approval of the County Director or the Director of Cooperative Extension or designee, before they can use the 4-H name and emblem to solicit funds.
Authorization to use the 4-H name and emblem is the responsibility of the Assistant Dean for 4-H Youth Programs working in cooperation with each District Director, County Director, or designee, who is then responsible for authorizing the use of the 4-H name and emblem within her or his jurisdiction. All methods of fund-raising must comply with the general fund development guidelines. District and County Directors are responsible for reviewing fund-raising activities and assuring their compliance with applicable policies.
Funds raised by 4-H units must comply with the following basic principles:
- Any raising or use of funds by a unit must be to further the research and educational goals of 4-H.
- A membership fee or dues cannot be a requirement for enrollment in the 4-H Youth Development Program in Florida. However, insurance costs and other charges incidental to program participation may be required to defer the costs for specific programs or activities.
- All fund-raising activities in support of the 4-H Youth Development Program must conform to the following regulations:
- Fund-raising activities, for ash or good and services, must conform with applicable federal and state laws and local ordinances.
- Federal laws regarding the use of the 4-H name also applies in these activities. Pertinent federal rules and regulations governing the use of the 4-H name and emblem published in the Federal Register March 17, 1987, must be followed. For more information of policies regarding use of name and emblem see other sections of this handbook or the 4-H website.
What is "quid pro quo" and Its Relationship to Fund-Raising Events?
Definition: "quid pro quo" is a payment made partly as a contribution and partly for goods and services provided to the donor by a charity.
An example of quid pro quo contribution is where the donor pays a charity $100 to attend a dinner event. The market value for the food and entertainment is $40. This amount is NOT what the charity pays or the food and entertainment but rather the market value of those items. Accordingly, $60 would be a tax-deductible gift. An additional example is where a donor is promised a specific item in exchange for a gift, e.g. for each $100 contribution the donor will receive a $25 alumni directory; this results in a $75 gift.
Gift and Endowment Funds
- In general, the donated funds are classified as gifts when the following characteristics exist:
-the intent is to make a charitable contribution;
-the donor does not impose contractual requirements;
-funds are awarded irrevocably. - An endowment fund is a fund whose donor has stipulated that the fund principal must remain inviolate and that only the income from the donors gift may be expended.
- Any proposals of significant gifts, gifts given with restrictions, or gifts proposed as endowments, unless governed by a specific Memorandum of Understanding, must be reviewed by the County Director.
- Gifts and endowments may be given directly to the University of Florida Foundation by private individuals, groups, agencies, or foundations for 4-H. These fund may be restricted to county 4-H programs of the donor’s choice.
- Both gift and endowment funds may be earmarked for specific purposes, i.e., an electric project, a guide dog project, 4-H scholarships, but are administered by Cooperative Extension in accordance with University policies and procedures.
Grants As a Source of Program Funds
It is essential to understand grants and their purposes. A grant is money given in return for action promised. The grantor agrees to give a specified amount on the condition that the money will be used for a designated purpose.
Grants are a one time donation to start a specific project or program. Most grants are given with the assumption that after a project or program is started, funds from other sources will be available to continue the program. Very few grants are renewable, especially those given by private organizations or foundations. Often, for time invested, it is more profitable to pursue renewable resources rather than grant money. Grants can play a vital role in initiating new programs or helping maintain a current program for a short period of time until more permanent funding can be obtained. If grant funding seems to be the most practical way to initiate a program or project do not hesitate to pursue the opportunity.
It is to the advantage of your 4-H program to develop the following characteristics in order to enhance it chances of receiving support:
- The 4-H program has matched closely the project or program to be funded with the areas of interest of the foundation from which the assistance is sought.
- The 4-H program is a 501(c)3 tax exempt non profit organization. This is required, with few exceptions.
- The 4-H program, or its leadership, has a good record and enjoys a strong support from its constituencies.
- The 4-H Program is able to demonstrate on paper its expertise, experience, and ability to carry through a project.
- The 4-H Program follows sound management practices, including standard budgeting and accounting practices; has an active and broadly representative advisory council.
The following criteria should be used in determining the acceptance and administration of funds.
- Federal and state funds allocated by the U.S. Department of Agriculture (USDA) and the State of Florida to support the 4-H Youth Development Program will be managed by the University in accordance with state and federal policies.
- The County Board of Commissioners of each cooperating county provides, under the permissive authority granted by the State Legislature, for the local maintenance and operation of Cooperative Extension work in that county. All expenditures are made in accordance with county fiscal procedures.
- Grants or contracts from federal, state, or other external agencies for applied research projects and training or demonstration projects must be processed and administered by the University Contracts and Grants Office. 4-H units may not commit themselves or the University to any contractual obligations.
- External funds supporting action, training, demonstration, or applied research projects in which an agent has principal investigator or project director status must be processed through the University Contracts and Grants Coordinator and administered by the District Director, regardless of the source.
