FundSvcs Community

Hello all,

We are dealing with a rogue Gofundme campaign that was set up in honor of an alum and are considering our options for transferring the funds to the institution.
The obvious method is for the campaign organizer to accept the funds to their bank and write us a check, but if the organizer (not an employee of the institution) gave us the cash, would it be substantially different from, say, a chapter chair accepting cash gifts at an event and transferring to us?

On the surface, it seems that the Gofundme arrangement might be better documented than the latter example, and there would be potential to give hard credit to the original donors.

Thanks,
Marc 


------------------------------
Marc Dykeman
Director of Advancement Services & Strategy
mdykeman2@washcoll.edu
------------------------------

Original Message:
Sent: 9/24/2020 4:14:00 PM
From: Marc Dykeman
Subject: Cash from a GoFundMe Campaign?

Hello all,

We are dealing with a rogue Gofundme campaign that was set up in honor of an alum and are considering our options for transferring the funds to the institution.
The obvious method is for the campaign organizer to accept the funds to their bank and write us a check, but if the organizer (not an employee of the institution) gave us the cash, would it be substantially different from, say, a chapter chair accepting cash gifts at an event and transferring to us?

On the surface, it seems that the Gofundme arrangement might be better documented than the latter example, and there would be potential to give hard credit to the original donors.

Thanks,
Marc 


------------------------------
Marc Dykeman
Director of Advancement Services & Strategy
mdykeman2@washcoll.edu
------------------------------

I suppose it's more of a hypothetical question that is bothering me. I'd like to have a guiding principle that I can follow in future cases.

Regarding the "chapter chair" scenario, is the underlying issue that cash doesn't necessarily have an owner, while cashless forms of currency always do?
If someone transfers funds to my Venmo account, for example, I own those funds, but I can transport physical cash without being considered its owner, so a registered fiscal agent can transport cash from a donor to the institution, but couldn't do the same via cashless methods.

Is that a legitimate way to describe the issue?

Thanks for the guidance!
Marc

------------------------------
Marc Dykeman
Director of Advancement Services & Strategy
mdykeman2@washcoll.edu
------------------------------

Original Message:
Sent: 09-24-2020 03:28 PM
From: John Taylor
Subject: Cash from a GoFundMe Campaign?

Well, you cannot give legal credit and issue a tax-receipt to the original donors.  They did not make a gift to the College.  But clearly, the organizer does not deserve a receipt, either.

And the "chapter chair" scenario only works when they are either an employee of the organization or are legally registered as a fiscal agent.

You will find similar events discussed previously.  However, the option I like best is to record a single gift of the lump sum on a "Various Donors" record.  And exception can be made for individuals that made sizeable contributions - but only if they had their funds returned and they made a gift to the College.

Step #2 is to develop a Third-Party Fundraising Policy to prevent these things from happening.  But also laying out a standard protocol when the inevitable rogue event comes along anyway.

John

John H. Taylor

Principal

John H. Taylor Consulting, LLC

2604 Sevier St.

Durham, NC   27705

johntaylorconsulting@gmail.com

919.816.5903 (cell/text)

Serving the Advancement Community Since 1987

Original Message:
Sent: 9/24/2020 4:14:00 PM
From: Marc Dykeman
Subject: Cash from a GoFundMe Campaign?

Hello all,

We are dealing with a rogue Gofundme campaign that was set up in honor of an alum and are considering our options for transferring the funds to the institution.
The obvious method is for the campaign organizer to accept the funds to their bank and write us a check, but if the organizer (not an employee of the institution) gave us the cash, would it be substantially different from, say, a chapter chair accepting cash gifts at an event and transferring to us?

On the surface, it seems that the Gofundme arrangement might be better documented than the latter example, and there would be potential to give hard credit to the original donors.

Thanks,
Marc 


------------------------------
Marc Dykeman
Director of Advancement Services & Strategy
mdykeman2@washcoll.edu
------------------------------

Original Message:
Sent: 9/24/2020 5:18:00 PM
From: Marc Dykeman
Subject: RE: Cash from a GoFundMe Campaign?


I suppose it's more of a hypothetical question that is bothering me. I'd like to have a guiding principle that I can follow in future cases.

Regarding the "chapter chair" scenario, is the underlying issue that cash doesn't necessarily have an owner, while cashless forms of currency always do?
If someone transfers funds to my Venmo account, for example, I own those funds, but I can transport physical cash without being considered its owner, so a registered fiscal agent can transport cash from a donor to the institution, but couldn't do the same via cashless methods.

Is that a legitimate way to describe the issue?

Thanks for the guidance!
Marc

------------------------------
Marc Dykeman
Director of Advancement Services & Strategy
mdykeman2@washcoll.edu
------------------------------

Original Message:
Sent: 09-24-2020 03:28 PM
From: John Taylor
Subject: Cash from a GoFundMe Campaign?

Well, you cannot give legal credit and issue a tax-receipt to the original donors.  They did not make a gift to the College.  But clearly, the organizer does not deserve a receipt, either.

And the "chapter chair" scenario only works when they are either an employee of the organization or are legally registered as a fiscal agent.

You will find similar events discussed previously.  However, the option I like best is to record a single gift of the lump sum on a "Various Donors" record.  And exception can be made for individuals that made sizeable contributions - but only if they had their funds returned and they made a gift to the College.

Step #2 is to develop a Third-Party Fundraising Policy to prevent these things from happening.  But also laying out a standard protocol when the inevitable rogue event comes along anyway.

John

John H. Taylor

Principal

John H. Taylor Consulting, LLC

2604 Sevier St.

Durham, NC   27705

johntaylorconsulting@gmail.com

919.816.5903 (cell/text)

Serving the Advancement Community Since 1987

Original Message:
Sent: 9/24/2020 4:14:00 PM
From: Marc Dykeman
Subject: Cash from a GoFundMe Campaign?

Hello all,

We are dealing with a rogue Gofundme campaign that was set up in honor of an alum and are considering our options for transferring the funds to the institution.
The obvious method is for the campaign organizer to accept the funds to their bank and write us a check, but if the organizer (not an employee of the institution) gave us the cash, would it be substantially different from, say, a chapter chair accepting cash gifts at an event and transferring to us?

On the surface, it seems that the Gofundme arrangement might be better documented than the latter example, and there would be potential to give hard credit to the original donors.

Thanks,
Marc 


------------------------------
Marc Dykeman
Director of Advancement Services & Strategy
mdykeman2@washcoll.edu
------------------------------