2.1 Gifts, Endowments, and Donations Policies

MLA is chartered as an organization that engages in benevolent and eleemosynary activities and therefore encourages and accepts gifts from agencies, institutions, associations and individuals.

Guiding Principles

a. When reasonable because of the level of funding received, and when appropriate in light of the Association's mission and priorities, the Board may elect to specifically identify a named gift or endowment. A named gift or endowment is defined as a source of funds which is given for a restricted purpose, often at the request of the donor. Before the named gift or endowment can be established, a written agreement specifying its purpose shall be developed.

b. The Association shall acknowledge bequests or contributions given (received) in memory or in recognition of a person or agency, but reserves the right to expend such funds at its own discretion, unless the funds were accepted for an exsisting association fund or purpose.

c. The Association reserves the right to charge appropriate administrative costs to establish and maintain named gift and endowment funds.

d. The Board shall not accept gifts or endowments for specified purposes without fully considering the long-term financial implications to the Association.

Approval --- Board Action, December 1984

2.1.1 Fund Raising Activities by Association Committees or Sections Policy

The MLA Board of Directors oversees all fund raising activities of the Association. This policy exists to insure coordination of fund raising activities among various components of the Association. Sections, committees and other association units (except chapters) must notify the Board of Directors of their fund raising plans. If the plan is to raise more than $2,000, specific approval from the Board is needed.

Between May and October 1, sections should not engage in fund raising for the coming year's annual meeting. Postponing fund raising until October 1 allows the NPC to carry out their efforts which benefit the association. This schedule also avoids confusion among donors.

Sections that raise money by selling advertising in their newsletters do not need to notify the board or seek permission. Advertising in newsletters was approved by the Board of Directors in December 1988.

Procedure

1. The association unit should send an informational statement to their board liaison (or in the case of a section to the Section Council Chair) with copies to the Treasurer and the director of financial and administrative services. The statement should include the names of prospective sponsers, the amount of the support requested, and a description of the purpose for which funds will be raised.

2. If the amount is over $2000, the association unit should request approval from the board prior to seeking or accepting (if unsolicited) the donations. The unit should sent their request to their board liaison (or section council chair in the case of sections), with copies to MLA's Treasurer and the director of financial and administrative services. The request should include the following information.

a. An indication that Board approval is sought for fund raising or to accept outside funding (in the case of an unsolicited donation).

b. The date when Board approval is needed.

c. A description of the purpose for which the funds are being sought or accepted, with documentation on the importance and relevance of the project or activity to MLA and the potential results of not funding the proposal.

d. A list of the prospective sponsors or sources which will be approached in the case of fund raising.

e. The total amount of outside funding that is to be requested or accepted, and a description of the time frame if relevant.

f. Evidence of the Association's ability to carry out the activity or project if funding is received.

g. If activity involves future funding commitments, the statement should describe long-range plans and possible sources of future financial support.

After approval is granted to seek or accept outside funding the association unit may proceed. All resulting agreements are subject to Board approval. As negotiations proceed, the association unit must provide progress reports to their board liaison, (or in the case of sections, the section council chair), the Treasurer, and the director of financial and administrative services.

Approval --- Board Action, December 1984

Chair's Manual Table of Contents

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Last updated on: March 21, 2001.