IDA Fiscal Sponsorship Handbook 2011/2012 - International ...

IDAFiscalSponsorshipHandbook 2011/2012DEFINING FISCSAL SPONSORSHIPFiscal sponsorship is a formal legal and financial arrangement in which a 501(c)(3)public charity, such as the IDA, agrees to sponsor a project that furthers our mission, forthe purpose of raising funds through grants and donations. When a project is screenedand accepted into our program, IDA essentially establishes a “re-granting” relationshipwith the project, agreeing to accept donations and administer them to the project withinthe terms of our agreement. This arrangement is a well-accepted model of nonprofit artsfunding. Donors, foundations, and corporations are able to donate funds to IDAspecifically for the purpose of supporting a sponsored project. IDA then administersthose funds to the project and exercises financial oversight to assure that funds arespent for their designated purpose.We understand that defining the fiscal sponsorship relationship can be challenging. If atany point you get questions from a funder that you are unable to answer please referthem to IDAʼs fiscal sponsorship team. Weʼre happy to discuss fiscal sponsorship andour program with potential or current funders and donors at any time.Relationship of Fiscal Sponsor and Project:The primary reason that projects seek sponsorship from IDA is to be eligible for grantsrequiring non-profit status and to be able to accept tax-deductible donations fromindividuals and businesses. It is important to remember that grants and donationssolicited are being made to IDA, and not directly to the project or the project director.IDA maintains full discretion and control over funds granted to us in behalf of asponsored project. If you continue to uphold your contract with IDA and fulfill all programrelated responsibilities, IDA agrees to grant those funds to your project, lessadministrative fees, and monitor how they are spent on your project.The IRS has a strict policy against “conduit” arrangements. In order to protect against aconduit arrangement, the IRS requires that IDA has “complete discretion and control”over the funds at all times, and the IRS holds IDA legally responsible to see that itspayments to the projects, and all activities resulting from them, further the IDAʼs missionand purpose for being tax-exempt.If you have any questions about the relationship between IDA and your project, donʼthesitate to call us.What Fiscal Sponsorship Isnʼt:Obtaining fiscal sponsorship does not mean that your project becomes a nonprofit orbecomes a 501(c)(3) organization. Your project is also not a direct project of IDA orowned by IDA in any way. Instead, your project remains an independent entityresponsible for managing itʼs own tax reporting and liability issues. Being sponsored bya nonprofit does not in any way exempt you from tax liability.IDA will accept and administer funds in behalf of your project. When you prepareapplications for funding or solicit donations it is important to be clear about therelationship between IDA and your project. IDA will be the organizational applicant forfunding and the recipient of all charitable donations in behalf of your project.FSPHANDBOOK–12/20/20114

IDAFiscalSponsorshipHandbook 2011/2012Do not represent yourself as working for IDA or representing IDA outside of the fiscalsponsorship arrangement. Letters or fundraising material should not be issued on IDAletterhead without express permission of IDA. You may not use IDAʼs name or tax IDnumber without permission or establish accounts in IDAʼs name without permission.There are a few terms that should be avoided when referring to or talking about yourfiscal sponsorship. The term “Fiscal Agent” is outdated and should not be used whenreferring to your relationship with IDA. You should also avoid the terms “Conduit” or“Pass Through” to refer to the re-granting relationship. Please also be careful whentalking with funders especially, to never use the term “investor” to refer to a donor. Weprefer that you always use the term Fiscal Sponsor when discussing our relationship tothe project and donor or grantor when referring to a funder who has given money to IDAin behalf of your project.Again, if at any time you have questions about dealing with funders and how to approacha unique situation, donʼt hesitate to contact us.Best Practices:IDA is a participating member of the National Network of Fiscal Sponsors through theTides Center. We adhere to the best of our ability to the best practices established forSponsors practicing the “re-granting” model of fiscal sponsorship. For information aboutthese best practices or general questions about fiscal sponsorship, visit:http://www.tidescenter.org/fiscal-sponsorship/nnfs.HOW TO APPLYThe current version of our application, along with our review criteria and all theinformation youʼll need to get started is available here:www.documentary.org/sponsorship/apply.MANAGING YOUR FISCAL SPONSORSHIP PROJECTThe first place you should look for answers to your fiscal sponsorship related questionsis this handbook or the programʼs page on IDAʼs website:www.documentary.org/sponsorship.Online you will find important information like a link to the most up to date version of thishandbook, lists of frequently asked questions, and the most up to date versions ofimportant program related forms and documents including check requests, balancerequest forms and project report forms. We also have several frequently requesteddocuments, which may be needed to accompany grant applications, available fordownload as PDFs.If you have been with the program for a while, there have likely been some changes todocuments and procedures since you got started. We have phased out almost all hardcopy forms and documents in favor of online forms and email whenever possible. Pleasebe sure to read all the information below about our new check request forms, balancerequest forms and project report forms and let us know if you have any questions.FSPHANDBOOK–12/20/20115

IDAFiscalSponsorshipHandbook 2011/2012EMAILS AND PROGRAM UPDATESWe use a service called constant contact to manage our emails and program updates. Ifyou are regularly receiving our e-blasts and newsletter you should be familiar with thisservice. However, if you are not regularly receiving updates from us itʼs possible that youhave opted out of receiving communications. Please opt back in as soon as possible oryou may miss important information and opportunities.To opt back in please follow the instructions here:http://www.documentary.org/content/not-receiving-ida-enewsletters-and-eblastsSECONDARY FISCAL SPONSORSHIPOur policy on secondary fiscal sponsorship has recently changed. If you would like toapply to IDAʼs fiscal sponsorship program and already have an agreement with anotherfiscal sponsor, please contact the Fiscal Sponsorship staff to discuss your specificsituation before beginning our application process.If you are already working with IDA, you can request permission to seek secondarysponsorship with another organization. For example, there may be situations where aspecific grant requires an in-state fiscal sponsor or a situation where we are unable towork with a particular grantor due to a conflict. In a situation like that, you will generallybe granted permission to pursue secondary fiscal sponsorship while keeping yoursponsorship with IDA open. In those situations we will do our best to point you in theright direction by recommending other organizations we trust.Not all requests for secondary sponsorship will be granted. Depending on your reasonsfor seeking outside sponsorship, you may be required to terminate your sponsorship withIDA if you wish to work with another sponsor.DONATIONS AND GRANTSDonations - A Donation as defined by the IRS is giving cash or property to a qualifiednon-profit without receiving anything in exchange or return. Funds given as donations toIDA in behalf of a fiscally sponsored project are tax deductible as allowed by law.Grant – A grant is a transfer of funds from a government body or private foundation to aqualified organization or individual for a project deemed to be in the public interest.Grants are often conditional and bound by specific contractual terms.Donations and grants are the only types of funds we are able to accept in behalf of yourproject.What types of funding should not go through IDA:We do not accept any earned income, investment funds or loans.FSPHANDBOOK–12/20/20116

IDAFiscalSponsorshipHandbook 2011/2012checks from individual donors and forward them to us so that you can keep close trackof donations. However, if you or the donor prefer, we can accept checks directly.Foundation checks are typically sent directly to IDA.Checks should be mailed to:IDAAttention: Fiscal Sponsorship Donations1201 West 5th Street, Suite M270Los Angeles, CA 90017Due to the volume of donations we receive, we are unable to notify you automaticallywhen you receive a donation directly to IDA, but you can request periodic updates byselecting Request a Sponsored Fund Balance Update on our websitewww.documentary.org/sponsorship and filling out the form. We will provide you withnames of donors, amounts donated and total funds available upon request. Balanceupdate requests are processed 1-2 times each week. If you need an immediate updateplease contact our office and weʼll do our best to assist you.Online Donations/PayPal:The IDA accepts online tax-deductible donations via PayPal. PayPal donations can bemade with a PayPal account, or with a major credit or debit card. Below is an exampleof what your projects PayPal interface will look like on IDAʼs website.FSPHANDBOOK–12/20/20118

IDAFiscalSponsorshipHandbook 2011/2012In order to set up online donations for your fiscally sponsored film, please provide thefollowing information:1) Title of your film exactly as you would it to read on our site2) Name(s) of Producer(s) in the order you want them listed3) Name(s) of Director(s) in the order you want them listed4) Synopsis of your film – up to 3 short paragraphs, 200 words total.5) A jpg image – 72 dpi and resolution 120x150 (portrait) or 150x120 (landscape)Image Guidelines - Production stills or other images without text tend to read better thanfilm posters. Please do not send company logos. The image should be specific to theproject. If you would prefer not to use an image, it will default to IDAʼs logo.6) A link to your website – optional7) A link to your trailer – optional8) Primary email address for contact about the listing (posted only upon request,otherwise for our records only)9) Primary phone number for contact about the listing – not posted, for our recordsonlyTo submit your projectʼs online listing or to make alterations to your current listing,please use this form: Submit or Edit Online Donations Information.FSPHANDBOOK–12/20/20119

IDAFiscalSponsorshipHandbook 2011/2012Once your film is posted and ready to accept donations you will be provided with a linkthat will bring donors directly to your filmʼs description on our site. If you would like toaccept PayPal donations via your own website you must use the link we provide. Youmay not link directly to our PayPal page from your website. Using a direct link to PayPalcould result in your donations being applied incorrectly or returned to the donor if wemake any changes to our account. All PayPal donations must be made via IDAʼswebsite!We are able to provide this online service with the help of PayPal. It is important toremember that in addition to IDA's 7% fee, PayPal takes a fee of 3% + $0.30 perdonation. Donors will be provided with an on screen receipt for tax purposes after checkout is complete. They will have the option to print the receipt for their records.Due to the volume of donations we receive, we are currently unable to notify youautomatically when you receive a donation via PayPal, but you can request periodicupdates by selecting Request a Sponsored Fund Balance Update on our websitewww.documentary.org/sponsroship and filling out the form. We will provide you withnames and email addresses of donors, amounts donated and total funds available uponrequest. Balance updates are sent by email approximately once a week.We are working on a system that will hopefully be available in early 2012, which willautomatically notify project directors of online donations. We will notify participants whenthat system is in place with instructions on how to opt in.PayPal should not be used as an onsite donation processing method during fundraisersor house parties. Having multiple donations made from the same computer during ashort time period will trigger a security review from PayPal and may result in our accountbeing frozen while a fraud investigation is conducted.You should never run anyone elseʼs credit card through PayPal! The individuals makingthe donation must complete the process themselves.If you would like to accept credit card donations offline or at an event or house party,please follow instructions in the next section, Credit Card Donations.Credit Card Donations:IDA accepts credit card donations online with the assistance of PayPal. PayPal is ourpreferred method for processing credit card donations whenever possible.If you have a situation where you would like to collect credit card donations offline, at ahouse party or event for example, or if you would like to accept recurring donations foryour project, we can accept and process donations via Visa, MasterCard, Discover orAmerican Express, securely, using our merchant account. In addition to one-timedonations, the option for donors to make recurring donations weekly, monthly orquarterly is also available.Credit card companies charge a fee for each transaction. In addition to the IDAadministrative fee of 7%, the following fees will be deducted from each credit carddonation: Visa, Discover and MasterCard 3%, American Express 3.5%.FSPHANDBOOK–12/20/201110

IDAFiscalSponsorshipHandbook 2011/2012To accept credit card donations you can either use IDAʼs pledge form, or create yourown. The form can be formatted however you would like. It may include your filmʼs logo,IDAʼs logo, information about your project etc. However, the form MUST include theinformation that appears on IDAʼs form. Please email sponsorship@documentary.organd we will send you the credit card form you need to use to accept credit carddonations.Signed credit card pledge forms should be returned to IDA by the donor. The forms canbe mailed, faxed to 213-534-3610 or scanned and emailed tosponsorship@documentary.org. If emailed please use the subject heading Credit CardPledge Form: Your Project Title.We unfortunately cannot accept credit card information over the phone. All forms mustbe signed. Due to security and privacy concerns you may not accept credit cardinformation directly on your website except by linking to PayPal. If you would like to giveonline donors the option of making recurring donations, simply provide a link to the creditcard form on your site and instruct donors to print and return the signed form directly tous. You should not, under any circumstances, collect credit card information from donorsdirectly. There are serious liability concerns in collecting credit card information withoutthe proper security in place to insure its proper use. Completed credit card forms shouldbe returned directly to IDA by the donor, for immediate processing. Donʼt keep copies ofanyoneʼs credit card information.IDAʼs credit card pledge form is available online at our website:www.documentary.org/sponsorhsip under Manage Your Sponsored Project.Credit card donors will be issued a receipt via email at the time the donation isprocessed.Online Donations/Social Networking and Crowd Funding:In the past, IDA has worked with IndieGoGo, Facebook Causes and Network for Good toaccept donations in behalf of our fiscally sponsored projects. In addition to the namedresources above we are always happy to explore new ways for our sponsored projectsto reach out to donors and social networks. Please donʼt hesitate to contact us if youhave an idea or opportunity you would like to discuss.Facebook – We are happy to work with Facebook Causes, allowing projects toaccept tax-deductible donations directly on your Facebook page. For moreinformation on starting a “cause” on Facebook, visit:http://apps.facebook.com/causes/help?category=Joining+and+participating+in+causesFacebook causes donations are processed by Network for Good. Network forGood issues receipts directly to donors. The fee for donations via Facebookcauses is currently 4.7 percent in addition to IDAʼs 7% fee. Funds donated throughcauses are released to IDA monthly.Indiegogo- We are pleased to announce our new partnership with IndieGoGoFSPHANDBOOK–12/20/201111

IDAFiscalSponsorshipHandbook 2011/2012which allows us to offer filmmakers lower rates for IndieGoGo fundraisingcampaigns when they are set up through IDA! We ask fiscal sponsorship membersto contact our office for a consultation if you are interested in working withIndieGoGo. You will not be able to offer donors a tax deduction if they contributevia your IndieGoGo campaign unless you go through the proper steps. Call us!Cash Donations:We are unable to accept donation in cash or coin. If you are holding an event and wouldlike to accept tax-deductible donations on site, please notify participants in advance thatthey will need to bring a checkbook, or make arrangements to accept credit cards onsite.Wire Transfer Donations:For donations of $5,000 and up, wire transfers directly to our fiscal sponsorship accountare a fast and convenient way to get access to donated funds in an urgent situation andavoid any wait time associated with mailing checks and waiting for them to clear. It isvery important that you contact us if you have a donor planning to transfer funds. We willneed the following information at the time the transfer is made:• Name of donor• Project title• Approximate date transfer will be made• Amount of donation (min $5,000 donation)• Email address or full mailing address where we can send a receiptDonors will need the following information to make a transfer to our account:• Bank: Wells Fargo• Account Name: International Documentary Association• Account #: 0645009432• ABA Routing #: 121-000-248Stock Donations:We are also able to accept donations of stock through our brokerage account. In manycases stock donations offer donors a double tax benefit, giving them both a charitablededuction and allowing them to avoid tax on any appreciation in value of the donatedstock, making it an attractive option for some donors. Stock donations are limited to giftsvalued at $5,000 and up at the time of donation.Donors will need the following information to make a gift of stock to IDA in behalf of yourproject:• Account Name: International Documentary• Wells Fargo Investments (WellsTrade)• Address: 625 Marquette Ave. Minneapolis, MN 55402• Phone#: 800-872-3377• DTC# ( 4 digits) : 0141• Account #: W81872839FSPHANDBOOK–12/20/201112

IDAFiscalSponsorshipHandbook 2011/2012Itʼs extremely important that you notify our office as soon as possible if a donor will betransferring stock. We will need to make arrangements in advance to facilitate the saleand transfer of funds in a timely manner. Please provide the following information at thetime of a transfer:• Name of donor• Donorʼs phone or email address• Donorʼs full mailing address• Amount of donation• Date of donationWhile we will do our best to sell and transfer the stock as quickly as possible, due to thesometimes unpredictability of the stock market we cannot guarantee that the donationwill not lose any value between the time that it is donated and the time it is sold and thefunds credited to your project. It is also possible for a stock to gain value. In that case,any increase in value will be credited to the project.Matching Gifts:We can process and accept matching gifts from businesses when a donor has made aneligible donation. Each company has their own rules and procedures for processingthese donations. Employees or businesses that would like to make eligible gifts shouldcontact the appropriate person at their place of employment for details on how toproceed. After a matching gift has been initiated, please let us know that a matchingdonation will be arriving and ask the company to reference the project title if possiblesomewhere on the check or accompanying letter. Some companies can take up toseveral months to process matching gift donations.Partially Deductible Donations:A partially deductible or quid pro quo contribution is a payment made to a charity by adonor partly as a contribution and partly for goods or services provided to the donor.Quid pro quo donations made to IDA are partially tax-deductible. For example, if a donorgives IDA $100 and receives an event ticket valued at $40 in return, the donor has madea partially deductible contribution. In this example, the charitable contribution/deductibleportion of the payment is $60. In order to comply with IRS regulations about thesepartially deductible contributions we must:1. Inform the donor that the amount of the contribution that is deductible for federalincome tax purposes is limited to the excess of the value of any goods orservices received.2. Provide the donor with a good faith estimate of the value of the goods or servicesthat the donor received.So what does this mean for you? If you plan to hold any event or conduct anyfundraising campaign where donors will be given anything of value in return for acontribution, including dinner, drinks, movie tickets, DVDʼs, T-shirts or any other goodsor services (even if those goods or services were donated to you at no cost!) you mustnotify our office of the arrangement before sending out invitations or solicitations so wecan arrange to handle notification and receipts properly. Our office must approve allFSPHANDBOOK–12/20/201113

IDAFiscalSponsorshipHandbook 2011/2012Quid pro quo donor arrangements in advance! You may not offer IDA donorsanything of value, including free DVDs, movie tickets or other donation rewards withoutclearing them with us first. Failure to adhere to this rule could result in your sponsoredfund being frozen, contributions you collect being entirely non-deductible for your donorsor even being returned.In a situation where the value of goods or services received is equal to or greater thanthe contribution, nothing is tax deductible. Those funds are considered earned revenue,not a donation, and should not be directed to IDA.Any time you are soliciting partially deductible donations the following text must beincluded in the solicitation:[Project Name] is a sponsored project of the International Documentary Association(IDA), a 501(c)(3) nonprofit arts organization. Contributions in behalf of [ProjectName] are payable to IDA. The value of [Description of Goods or Services Received]is [$xx.xx]. Any contribution above $[xx.xx] is tax deductible to the extent permittedby law.Non-Cash/ In Kind Donations:If someone would like to donate a non-cash tangible good for direct use in the productionof your project, we can issue you a receipt under most circumstances. Some examplesof this type of donation include equipment or office supplies to be used directly for theproduction of your sponsored project.The receipt we issue, in accordance with IRS regulations, will not specify a dollar amountfor the deduction. We will simply describe the goods donated in detail, and the donor willhave the responsibility of quantifying the donation and confirming its deductibility. Youwill then be responsible for accounting for how donated goods are used for your projectwhen you file your reports and assuring they are accounted for in your project budget.If a donor has questions about the deductibility of a non-cash contribution they shouldcontact their tax professional. We are not qualified to answer tax related questions.We are unable to issue receipts for donation of time or professional services, as theseare non-deductible by law. We also cannot issue receipts for donated space, rent orlarge ticket items like cars or boats. No receipts will be issued for items donated for thepurpose of fundraising.For example; if an editor donates professional services and the use of their personal orcompany equipment. In that case we would issue a receipt for the donated rental of theequipment, but not for the editorʼs time, which is considered volunteer work by the IRS.Volunteer work is non-deductible however there may be some deductions available forexpenses incurred during volunteer work. Please contact your tax provider for moreinformation.If you would like a donor to receive acknowledgement of a gift in kind please fill out theform titled: Non-Cash Donation Submission.FSPHANDBOOK–12/20/201114

IDAFiscalSponsorshipHandbook 2011/2012We issue these receipts as a courtesy to our sponsored projects. There is no fee for thisservice.FUNDRAISING EVENTS AND SOLICITATIONSEvents:Fundraising parties, screenings and house parties are a great way to connect withdonors and are a popular method of raising funds from individuals and businesses.If you plan to collect tax-deductible donations at your event, a phone consult with amember of our fiscal sponsorship team is required before you move forward with anyfundraising event where the ticket price will be $75 or more. A consult is also required forany event where an auction will be held no matter what the price of the ticket.You must arrange the consult with our office before sending out invitations or solicitingdonations in writing and all language on the invitation must be approved beforeproceeding. Please allow plenty of time for us to review your written material! We cannotguarantee that we will always be able to accommodate last minute requests so pleasecontact us while you are still in the planning stages of your event.Solicitations:All written fundraising solicitations, including solicitations through mass email, yourwebsite or social networking sites must be approved by us in advance. To get materialsapproved, please email a copy of the mailing or the specific text you plan to use tosponsorship@documentary.org with the subject heading Fundraising Text Approval:Your Project Title. Under most circumstances, allow approximately 5 business days forreview. For rush requests please contact our office. Weʼll do our best to accommodaterush requests whenever possible.One of the following pre-approved statements should accompany any written solicitation:Pre approved text I:Fully Deductible Contributions[Project Name] is a fiscally sponsored project of the International DocumentaryAssociation (IDA), 501(c)(3) nonprofit arts organization. Contributions in behalf of[Project Name] are payable to IDA and are tax deductible as allowed by law.Pre approved text II:[Project Name] is a fiscally sponsored project of the International DocumentaryAssociation (IDA), a 501(c)(3) nonprofit organization. Contributions in behalf of[Project Name] are payable to IDA and are tax deductible as allowed by law.IDA will administer all funds received in behalf of [Project Name] and exercisefinancial oversight to assure that funds are spent for their designated purpose.FSPHANDBOOK–12/20/201115

IDAFiscalSponsorshipHandbook 2011/2012Partially Deductible ContributionsPre approved text III:[Project Name] is a fiscally sponsored project of the International DocumentaryAssociation, a 501(C)(3) nonprofit arts organization. Contributions in behalf of[Project Name] are payable to IDA. The value of [Description of Goods or ServicesReceived] is [$xx.xx]. Any contribution above [$xx.xx] is tax deductible to the extentpermitted by law.Pre approved text IV:[Project Name] is a fiscally sponsored project of the International DocumentaryAssociation (IDA), a 501(c)(3) nonprofit arts organization. Contributions in behalf of[Project Name] are payable to IDA. The value of [Description of Goods or ServicesReceived] is [$xx.xx]. Any contribution above [$xx.xx] is tax deductible to the extentpermitted by law. IDA will administer all funds received in behalf of [Project Name] and exercisefinancial oversight to assure that funds are spent for their designated purpose. IDAwill issue a receipt for tax purposes.Corporate Sponsorship:Corporate Sponsorship is, overall, a very small part of the revenue received in behalf ofsponsored projects. However, it can be a valuable source of revenue for somedocumentary projects. Sponsorship may, in certain circumstances, be tax deductible. Ifyou plan on seeking corporate sponsorship it is very important to distinguish betweenSponsorship and Advertising.Sponsorship as defined by the IRS includes:“...any payment made by a person engaged in a trade or business for which the personwill receive no substantial benefit other than the use or acknowledgment of the businessname, logo, or product lines in connection with the organization's activities. "Use oracknowledgment" does not include advertising the sponsor's products or services.”-IRS Publication 598http://www.irs.gov/formspubs/page/0,,id%3D12668,00.htmlA payment is not a qualified sponsorship payment if, in return, the organizationadvertises the sponsor's products or services.Advertising includes things like:-Product placement.-Ads for the company or product on the projectʼs website.-Public endorsements of the company or its products.-Inducements to purchase or use the companyʼs products or services.-Mentions of the companyʼs products, services or special deals in any social media.FSPHANDBOOK–12/20/201116

IDAFiscalSponsorshipHandbook 2011/2012Federal Government Grants:In recent years weʼve worked with projects that have received funding from the NationalEndowment for the Humanities and the US Department of State. We are open to workingwith other government agencies as well. While we have worked with the NationalEndowment for the Arts in the past, the NEA does not currently accept applications fromfiscal sponsors; therefore we are unable to support applications to the NEA at this time.Each government agency has its own requirements and guidelines. If you identify anopportunity that you believe is a good match for your project, and you have verifiedeligibility with the granting agency, please contact our office to discuss the opportunity assoon as possible. We will need to schedule a review at least 4 weeks before a grantdeadline and cannot guarantee our ability to meet rush requests or last minutedeadlines. We will review the application with you, look at the requirements anddeadlines involved, and decide whether or not to proceed. Sponsorship for Governmentgrant applications is never guaranteed. The earlier you consult us, the better.National Endowment for the Humanities:The NEH currently has three grant opportunities which may be appropriate forindependent documentary projects.America's Media Makers: Development Grants,America's Media Makers: ProductionGrants,Bridging Cultures through Film: International TopicsIf you identify another opportunity, and have verified eligibility with the organization,please let us know.If you are interested in applying for one of these opportunities, please contact us as soonas possible to discuss your projectʼs eligibility. If we decide to sponsor your project forone of these grants we will schedule a call to go over a specific delivery schedule andguidelines for getting required materials to IDA. The call should be scheduled at least 4weeks before the deadline. Completed Materials will be due to IDA a minimum of 3business days before the application due date. The exact delivery schedule andrequirements will be discussed during the scheduled call. Please be aware that wetypically have several sponsored projects applying for each of these deadlines. Wecannot guarantee we will be able to meet last minute requests and if you miss ourdeadlines, we may not be able to submit your application. The NEH applications areextremely demanding, please donʼt waste your time putting an application togetherwithout talking to us first! Sponsorship for these opportunities is not guaranteed.MANAGING YOUR ACCOUNTDISBURSEMENTS AND BALANCE UPDATESYou can request funds from your fiscal sponsorship account whenever you are ready tospend them, or when you need to reimburse yourself or your company for funds recentlyspent. If you are requesting an advance of funds, you should only be requesting fundsFSPHANDBOOK–12/20/201119

IDAFiscalSponsorshipHandbook 2011/2012that you believe will be spent within approximately a 3 month time period, unlessextenuating circumstances such as extended travel apply. Be especially cautious not torequest excess funds at the end of the calendar year in order to avoid tax liability forunspent funds. If you find you have overestimated expenditures at the end of the yearand wish to return excess funds in order to have them reissued in the next calendar yearand avoid having them accounted for in your 1099 please contact our office beforeDecember 15 for instructions on how to handle this situation.Balance Updates:To request a detailed showing all financial transactions to our account, please fill out theform titled Request a Sponsored Fund Balance Update, available here:www.documentary.org/sponsorship under the heading Manage Your Sponsored Project.We send out updates about 1-2x per week.Withdrawing Funds:Please remember that IDA maintains control and discretion over the use of all funds atall times. IDA reserves the right to either modify or deny disbursement requests for anycause. For example, if a project is delinquent in filing a project report to IDA or a funder,or if any irregularities are found in project expenditures or if expenditures are not in linewith funder requirements, your requests may be denied or held until all necessaryrequirements are satisfied. If the project director is unable or unwilling to comply with IDAor grantor requirements the project may be terminated and funds returned to donors lessadministrative fees.Check Requests:To request funds from your sponsored project complete our online check request form.The form is available here under the heading Manage Your Sponsored Project:www.documentary.org/sponsorshipYou will need to be logged on to your documentary.org account in order to view andsubmit the form. If you are able to log in but are unable to view the check request formyour membership may have expired. To renew your membership before withdrawingfunds, go to www.documentary.org/membership or contact Jon Curry atjon@documentary.org. If your membership is current and you are still having troubleaccessing the form, either call or email the office and weʼll send you a form for one timeuse while we correct the problem. We cannot accept fund requests over the phone or byemail.Funds are disbursed by check, approximately once per week. Under most circumstancesyou will received a check within 10-12 days of your request. We send checks by USPS.When your check has been mailed we will notify you that it has been sent, and email youan up to date account balance showing all account activity including the withdrawal. Ifyou would like to use Fed Ex or UPS, you can provide us with an account number andwe will use it to send your check to you.If you have an urgent situation requiring a specific turnaround time, please contact ouroffice before submitting your request. We will do our best to accommodate urgentFSPHANDBOOK–12/20/201120

situations whenever possible.IDAFiscalSponsorshipHandbook 2011/2012Wire Transfers:We may be able to issue a wire transfer under certain circumstances however youshould not count on this option. If you have an urgent need for funds, please contact ouroffice to discuss your circumstances and timeline.Check Pick-Up:You are welcome to arrange to pick up your check at our office if you wish. Pleasecontact our office to make specific arrangements. Unscheduled walk-ons will not begranted access to the lot.REPORTINGPlease note that if you have been with the program for a while, the project reportingrequirements and due dates have changed. Please read this section carefully. We areno longer accepting the old paper report forms. All reports must be filed using the newonline system and reporting due dates will be strictly enforced. If project reports are notfiled for your project, disbursement requests will be denied!Reporting Requirements and Due DatesAll active projects are required to complete project reports two times each year.Project reports consist of 2 parts; a narrative report and a financial report.2011A report covering January 1, 2011 – June 30, 2011 is due July 31, 2011A report covering July 1, 2011 - December 31, 2011 is due January 31, 2012. 2012A report covering January 1, 2012 – June 30, 2012 is due July 31, 2012A report covering July 1, 2012 – December 31, 2012 is due January 31, 2013Part 1: Narrative ReportAll active projects are required to complete the narrative section of the report.The narrative report is completed online. Unfortunately you are unable to savethe report form as you are working on it, so itʼs advisable to take a look at thequestions ahead of time and plan a time when you will be able to complete theform in its entirety. If you are prepared, we estimate it will take about half an hourto complete.On this section of the report you will be asked for a project status report and todetail any project changes since your acceptance to the program, or since yourlast project report. You will also be asked to list funders youʼve applied to andgrants youʼve received. The status reports should consist of a detailed narrativedescribing the current phase of production, recent project related activities, futureplans and any changes to project personnel, project goals, and/or budgets sinceyour application or since your last project report. If reporting significant changesto your budget, you will also be required to complete part II, Financial report.FSPHANDBOOK–12/20/201121

IDAFiscalSponsorshipHandbook 2011/2012Part II: Financial ReportIf you have received any funding from IDA within the previous reporting period,you will receive a detailed financial summary from us 2-4 weeks before yournarrative report is due. This report will show all of your account transactions,including a detailed list of donations and withdrawals. You will need thisinformation to complete the financial report.Proper record keeping is essential and cannot be emphasized enough. IDA islegally responsible for all funds that come through the fiscal sponsorshipprogram. As a project director, you are legally and contractually responsible forreporting back to us on exactly how any funds you receive are spent on yourproject. In addition to our reporting requirements you will also need access toreceipts and financial records. When in doubt, don't throw it out!The budget that was approved with your application should be your guide forwhat is and isn't an approved expense.You are required to complete Part II, Financial Reports, if: a. You have had significant changes to your project budget since your applicationor last report, and/or b. You have received any funds from IDA since your last project and financialreport was submitted. Your financial reports should be saved as either a PDF or excel document anduploaded to the online form at the time of completion.What to submit: 1. Budget Update - If there have been any significant changes to your project'sbudget, provide a current detailed line item budget. Please provide anexplanation of significant changes from your previously approved budget inaccompanying budget notes. 2. Cost Report - Provide a detailed list of project related expenditures. You mustaccount for all funds you've received since your last project report was filed. Forexample, if you have received $10,000 from IDA since your last report, you mustlist a minimum of $10,000 in corresponding budget related expenses. Eachexpenditure listed should correspond to an individual receipt or invoice. Bespecific. Vague or general descriptions alone, such as "cash" or "productionexpenses" are not adequate. While the format of this financial report may varydepending on the accounting system you use, it must include, at minimum, thefollowing information: a. budget category b. description c. vendor name d. date e. amount FSPHANDBOOK–12/20/201122

IDAFiscalSponsorshipHandbook 2011/2012f. check number or method of paymentEXAMPLEBudgetCategory Description VendorName6010/Travel–Airfare6010/Travel–AirfareProducerairfareNYCtoLAforjohnSmithInterviewDPairfareNYCtoLAforJohnSmithGenericAirlinesGenericAirlinesInterview Totalbudgetcategory60004000/ProductionStaffDPforJohnSmithInterview/brollJoeSchmo Totalbudgetcategory40002000/producingstaff2000/producingstaffDirectorsalary/2 nd partialpaymentofflatfee25,000.LineProducersalaryJaneSmithMarySmith Totalbudgetcategory2000 TOTALDate Amount Budgeted/remaining8/1/11 $460 10,000/95408/3/11 $460 10,000/9020$920 8/3/11 $1000 20000/19000$1000 8/6/11 $2500 25,000/20,0008/6/11 $850 8500/6800$3350 $5270 CheckNumber/paymentmethodVisaending5434/AugustStatement.Visaending5434/AuguststatementChk#2340/topayvendorinvoice#0123Chk#2341/topayvendorinvoice#002Chk#2342/topayvendorinvoice#0811FSPHANDBOOK–12/20/201123

IDAFiscalSponsorshipHandbook 2011/2012Grant Reporting:Our reporting requirements are in addition to the reporting requirements of granters youmay be working with. You will be provided with copies of all grant contracts anddocuments which outline reporting requirements and you will be responsible for stayingon top of the reporting requirements of your funders. If we become aware of delinquentfunder reports we will freeze any remaining funds in your sponsored account until theproject is in good standing with funders.Remember that when you are dealing with grantors you are representing IDA, in additionto your project. Repeated delinquencies by projects in our program can negatively affectour standing with grantors making it more difficult for IDA and other documentaryprojects in our program to find funding. Please be diligent in all your dealings withfoundations funding your project.Project Status:Projects in IDAʼs fiscal sponsorship program have 5 possible statusesPending – Project has been accepted into fiscal sponsorship. We are awaiting copies ofyour final paperwork before activating your account.Active - Project is active, in good standing and able to accept donations and requestwithdrawals.Hold/ good standing – project is in good standing and current on all reporting but projectdirector has placed the project on hold. It is inactive and not fundraising. Projects can beplaced on hold for up to 2 years and can be reactivated by the project director at anytime by contacting our office and submitting a current project report form.Hold/ delinquent – project has been placed on hold by IDA staff due to reportdelinquency or noncompliance with requested audit.Closed/ good standing – project in good standing has been completed and closed byproject director.Closed/ delinquent – project has been closed by IDA staff due to delinquency or inabilityto contact project director. Having a project closed as delinquent may impact your abilityto initiate future fiscal sponsorship projects with IDA. Please see the final section,Closing out your fiscal sponsorship for information on going through the steps necessaryto close your project in good standing.LEGAL ISSUESLegal Entities and Business Structures:Whether you have filed any official business documents or not, the moment you beginaccepting funds through fiscal sponsorship you are operating a business.FSPHANDBOOK–12/20/201124

IDAFiscalSponsorshipHandbook 2011/2012Most projects in our program accept funds through LLCs (limited Liability Companies),Unincorporated Sole Proprietorships or Corporations. Each different entity carriesdifferent responsibilities and requirements. The IRS has a description of each of thesebusiness entities, along with tax information for each, here:http://www.irs.gov/businesses/small/article/0,,id=98359,00.htmlWhile we will do our best to offer general advice whenever possible, unfortunately weare not qualified or able to offer any specific advice on legal questions. You shouldconsult a lawyer and/or accounting to help you make a decision about what type ofbusiness is right for your individual situation.Banking:You are not currently required to have a separate bank account for your project, but westrongly recommend it. Keeping track of finances for tax and reporting purposes is mucheasier with a dedicated account. Even if you are managing your project as anunincorporated individual you can still speak with your bank about getting a separatebusiness banking account just for your project.1099s:If you are eligible to receive one, you will be issued a 1099 at the end of the year for anyfunds that IDA has released to you for your project. 1099ʼs are sent in January. Pleasecontact us as soon as possible after receiving it if you have any questions or concernsabout your 1099. Copies or 1099ʼs are forwarded to the IRS in February.Taxes:We strongly advise everyone to consult a tax professional before requesting fundsthrough your Fiscal Sponsorship. While weʼll do our best to point you in the rightdirection, our staff is not qualified, or legally permitted, to answer tax related questions.You are responsible for reporting all income, including money received through fiscalsponsorship, to the IRS. If you have set up your project as a business and have beendiligently keeping track of the money received and spent on project related expenses,you shouldn't owe any taxes on the money we send you, except for what you will owe onyour project related salary. However, we cannot ever guarantee that you will have notax liability. You must speak to your own tax advisor to discuss your personalcircumstances. Our staff is not qualified, nor permitted, to give tax advice.WRAPPING UPCrediting IDA as your Fiscal Sponsor:Whether or not grant monies are actually received and/or disbursed by IDA, the projectdirector shall acknowledge IDAʼs role in the production by according the IDA credit in theprojectʼs end roll as follows:“Fiscal Sponsorship provided bythe International Documentary Association”FSPHANDBOOK–12/20/201125

IDAFiscalSponsorshipHandbook 2011/2012Closing Your Fiscal Sponsorship:To close your fiscally sponsored project with IDA, youʼll need to submit a final report (seeReporting section). We will send a letter stating your project is officially closed out withIDA.Please sign and return this page with your signed fiscal sponsorship agreement andcompleted W9.Statement of AgreementI certify that I have read, understand, and agree to the terms set forth in thishandbook. I further certify that I have received a copy of these policies. Iunderstand that IDA reserves the right to change these policies at any time.Project Director Signature:_____________________________________Date:________________________Printed Name:____________________________________________________Name of Project:__________________________________________________FSPHANDBOOK–12/20/201126