Fundraising FQA

Prepared for NARSVPD Board of Directors Meeting
September 17, 2007
  1. What government-wide requirements apply to project staff fundraising under our Corporation grant?
    You must follow all applicable OMB circulars on allowable costs (OMB circular A-87 for State, Local, and Tribal Governments, OMB Circular A-122 for Nonprofit Organizations and OMB Circular A-21 for Educational Institutions). In general, the OMB circulars do not allow the following as direct costs under the grant: Costs of organized fundraising, including financial campaigns, endowment drives, solicitation of gifts and bequests, and similar expenses incurred solely to raise capital or obtain contributions. This means that grant-funded staff may not engage in fundraising to support the sponsor organization, project administrative costs (i.e., volunteer support expenses), or indirect costs.
  2. May we charge project staff time spend on fundraising to the required non-federal share of the grant?
    The same rules cited in response to Question 1 apply to both the federal and non-federal share of the grant budget.
  3. May grant-funded project staff solicit non-federal contributions (cash and in-kind) for costs associated directly with the service of volunteers, such as transportation, meals, recognition events, and other costs budgeted as volunteer expenses?
    Yes.
  4. Is there any way project staff can support the sponsor’s fundraising or resource development efforts on behalf project administrative costs as part of their grant-funded role?
    Following are examples of some of the activities in which project staff may engage:
    Making project financial needs known to sponsor staff, sponsor board members, and members of the project’s community participation group.
    Assisting the sponsor or community participation group to prepare plans for raising the required non-federal share of the grant.
    Informing community organizations and leaders about the project, its activities and accomplishment and the non-federal requirements of the grant.
    Negotiating agreements, as part of the Memorandum of Understanding with a volunteer station, for the volunteer station to provide cash and in-find support for the project, as long as such contributions are not a pre-condition of providing the station with volunteers.
    Providing information about the project to a grant writer.

    Sponsors and project directors must exercise their best judgment as to what activities directly support volunteer service activities. Refer any questions related to the allow ability of the costs of a given activity to the project manager in the Corporation State Office.
  5. May we chare project staff time spent on fundraising for the project administrative costs to excess non-federal funds?
    Yes. The OMB circulars on allowable costs do not apply to locally generated contributions that are in excess of the non-federal share. Therefore, those funds may be used for any purposes that are not inconsistent with the provisions of the Domestic Volunteer Service Act.

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