Christian Family & Childrens Center
Statement of Financial Responsibility and Practices
Philosophy
The Center is committed to financial practices that reflect biblical standards and accountability to biblical procedures. These practices are annually printed in policies and practice publications for the constituencies that they apply to such as Board and Employee Handbooks, Client Program Handbooks, and web publishing of accounting procedures. The Board of Directors, which operates on a governance model, regularly reviews and adapts these policies to reflect client and organizational needs within the context of biblical integrity. It also contracts with an independent certified public account to have the financial reports reviewed annually in accordance with auditing standards generally accepted in the United States of America (GAAS) with its financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP).
Procedures
It is the Center's philosophy to exercise the management and financial controls necessary to provide reasonable assurance that all Center resources are used in conformity with applicable program standards that are in accordance with its exempt purpose. The accounting department treats restricted funds as separate from the regular operational funds both in terms of spending and identification to carry out the donors intent.
As part of our fund-raising appeals which, in exchange for a contribution, offer premiums or incentives (the value of which is not insubstantial but is significant in relation to the amount of the donation) donors are advised of the fair market value of the premium or incentive and that the value is not deductible for tax purposes.
When dealing with persons regarding commitments on major estate assets, or other types of gifts to the Center, our staff seek to guide and advise donors so that they have adequately considered the broad interests of the family and the various ministries they are currently supporting before they make final decisions. Donors are encouraged to use the services of their attorneys, accountants, or other professional advisors.
There are several practices that are forbidden by practice at the Center:
a. No employee or outside fundraising consultant can receive any remuneration or based directly or indirectly on a percentage of charitable contributions raised.
b. Tax deductible gifts may not be used to pass money or benefits to any named individual for personal use or related party benefit.
c. An officer, director, or other principal of the organization must not receive royalties for any product that the organization uses for fund-raising or promotional purposes.
d. All in-kind gifts are receipted as any cash gift, but receipts only reflect the description of the property or gift accurately without a statement of the gifts market value. It is the responsibility of the donor to determine the fair market value of the property for tax purposes.
e. The Center and all of the Board and administrative personnel in charge of decision-making shall avoid conflicts of interest unless they are clearly the best solution for the Center. Transactions with related parties may be undertaken only if all of the following are observed:
1) a material transaction is fully disclosed within the organization of the organization;
2) the related party or parties involved are excluded from the discussion and approval of such transaction;
3) a competitive bid or comparable valuation exists;
4) the Centers Board has acted upon and demonstrated that the transaction is in the best interest of the member organization.
The Center will always:
a. Provide a copy of its current audited financial statements upon written request as well as other disclosures as the law may require.
b. Provide a report, on written request, including financial information, on a specific project for which gifts are solicited.
c. Follow these standards for fund-raising:
1.) Truthfulness in Communication: All representations of fact, descriptions of the financial condition of the Center including narratives about events must be current, complete, and accurate. References to past activities or events must be appropriately dated. There must be no material omissions or exaggerations of fact or use of misleading photographs or any other communication which would tend to create a false impression or misunderstanding.
2.) Communication and Donor Expectations: Fund-raising appeals must not create unrealistic donor expectations of what a donors gift will actually accomplish within the limits of the Centers ministry.
3.) Communication and Donor Intent: All statements made by the Center in its fund-raising appeals about the use of the gift will be honored by the Center. The donors intent is related both to what was communicated in the appeal and to any donor instructions accompanying the gift.