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Page History
| Standard Name: | Church and Project Fund Standard |
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| Relevant Policy: | |
| Relevant Standard: | Grant-Making Standard |
| Creation Date: | 8/23/2023 |
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| Revision Date: |
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Purpose
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Table of Contents
General Standards
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Scope
This standard applies to all church and project funds.
Policy Supporting This Standard
Church/Project funds are created in accordance with the
Funds and Grant-Making Policy for Churches and Projects
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Standard Statement
Church and project funds as defined in the Policy linked above, are utilized to finance ministry projects and activities that are not typically financed through Ministry Team Development (MTD). Monies from funds are disbursed through the grantmaking process. The establishment and disbursement of church and project funds must be consistent with, and further, . Church/Project funds are created for Reliant church/ministry partners to further Reliant's tax-exempt purposes in a matter compliant with applicable laws and regulations and in accordance with the information outlined below.
Roles:
Affiliate Fundraiser is a foreign national raising funds through a church/project fund on behalf of Reliant. They must attend a Reliant training and become an officially approved deputized fundraiser.
purpose. Monies from church/project funds may be used for Accounts Payable requests, internal fund transfers, Reimbursements and ERBs, and/or grants. (See Reimbursements vs. Grants for more details.)
Roles:
Fund Custodian has ultimate responsibility Reliant Point Person is desired to be a Reliant employee/associate assigned to be the main contact for the church/project fund and is required for all church/project funds. The Reliant Point Person acts as a custodian of the fund, is responsible for the management of the fund and compliance with policy and standards, and in some cases including the requirements outlined in this standard and the Grant-Making Standard. The Fund Custodian acts as the primary point of contact for matters related to the fund. In some cases, the Fund Custodian may receive and distribute monies on behalf of the church/ministry. The Fund Custodian signs a Master Grant Agreement on behalf of the church/ministry and acts as a representative for all parties associated with the church/ministry. The fund custodian should normally be a Reliant employee or associate. In rare exceptions, an individual who is not a Reliant employee or associate may act as a Fund Custodian after being vetted to the same degree as a Reliant associate and with appropriate approval. The Fund Custodian agrees to receive training/tutorials on forms, processes, and procedures for grant requests.
Authorized Signer(s) is the individual(s) who is is authorized by the church/ministry to approve transfers, reimbursements, grants, and other payments from the church/project fund as outlined on the original church/project fund request form. Fund Custodians are typically also Authorized Signers. In many cases, the church/ministry designates one or more Authorized Signers in addition to the Fund Custodian.
Affiliate Fundraiser is a foreign national raising funds through a church/project fund on behalf of Reliant. When the qualifications as outlined below are met, they must attend a Reliant training and become an officially approved deputized fundraiser.
Designated Grantee(s) is a foreign national receiving monies distributed from the church/project fund in the form of a stipend .
Partnership:
All church and project funds must be vetted first by the Program Team lead to confirm the church/ministry partnership with Reliant (a Memo of Understanding has been signed) and to confirm that this request is one that they believe Reliant should move forward on.
Restricted church/project funds may be requested by Reliant partners regardless of whether that partner has Reliant employees/associates. Unrestricted church/project funds may only be created for partners who have Reliant employees/associates due to the purpose of the fund. for ministry purposes relevant to the purpose of the church/project fund. Designated Grantees may also be Affiliate Fundraisers. (See Grant-Making Standard for more details.)
Purpose:
The purpose of the requested fund must be determined to be in alignment with Reliant's tax-exempt purpose as outlined in the policy linked above. If in the Funds and Grant-Making Policy for Churches and Projects. The fund purpose is documented in the Master Grant Agreement (See details below). If the agreed-upon purpose of the fund changes in the course of the life of the fund, an addendum to the Master Grant Agreement is Agreement is required.
Unrestricted Church Fund: The The sole purpose of these designated funds (accounts) is to absorb leftover funds (money) monies from exited staff that were a part of their church/ministry (typically for residencies/internships) and use those funds exiting from Reliant, so that those monies may be redeployed to help support other staff at the same church/ministry who need assistance with raising support. These are unrestricted, non-revenue funds (accounts), and funds (money) only come in and out through internal transfers. (Exit In most cases, these unrestricted church/ministry funds are used in fixed-term programs. Monies in these funds are sourced only through internal transfers and not from outside donations. Exit transfers must follow the order of eligibility (outlined in Exiting MTD Funds Transfer) for exit funds distribution. ) Any partner within any program team may create an unrestricted church fund.
Restricted General Church/
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Ministry Funds: These funds receive donations from outside donors with the purpose of supporting the general activities and services of a given church or network of churches or other Christian ministries. In contrast with project funds, the restricted general church/ministry funds are broad in nature, used to support the ongoing activities and services of the church/ministry, and fund distribution tends to be determined by church leadership
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, subject to Reliant grant-making standards.
Restricted Project Funds: These funds receive donations from outside donors to help support specific projects that the church/ministry/network wishes to accomplish. In contrast to general church/ministry funds, project funds are more specific in nature and typically have a defined end date. The purpose of project funds can vary but they tend to be more specific with a focused purpose in mind.
Monies for all restricted church/project funds may also be supplied through internal transfers. Monies may be disbursed from restricted funds through grants, AP requests, reimbursements, and internal transfers.
Fund purposes associated with Affiliate Fundraisers and/or Designated Grantees are explained below.
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If the purpose of a church/project fund includes supporting the funding of a Designated Grantee(s) stipend, the following applies:
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Fundraising:
- All contributions are the sole property of Reliant; Reliant maintains full control of the donated funds and ultimate discretion as to their use for Reliant’s ministry purposes. Reliant’s desire is to honor the donor preference of the contribution but Reliant has complete discretion and control over the use of the donated funds as part of our 501(c)3 status.
- For contributions to a Reliant fund to qualify as tax-deductible, they must be intended by the donor for use by Reliant Mission and the church/ministry and are not personal gifts for the Affiliated Fundraiser or Designated Grantee. The donor is supporting any individual, including any individual associated with the fund. Donations to Reliant must not be channeled to individuals for their personal inurement apart from a pre-approved ministry purpose by for a Reliant-approved church/project and ministry partner. Therefore, if an affiliated fundraiser associated with the church/project fund moves to another ministry, the funds do not follow as funds are intended for the church/ ministry , not the individual raising support on behalf of the church/project fund. If an organization that is registered in a foreign country has foreign nationals who are working for the organization (such as interns) and the organization desires to partner with Reliant and utilize a church/project fund to help fund their workers in that country, Reliant may determine that the fund can utilize Reliant's solicitor reporting to help tag the Designated Grantee for grant disbursement amount reporting.
- Overfunding of the church/project fund resulting from any support-raising efforts (including those of the Affiliated Fundraiser/Designated Grantee) remains with the fund.Grant stipend disbursement amount does not increase based on donations received to
- If any individual associated with the church/project fund . Therefore, the Designated Grantee would not be able to receive additional distributed stipend amounts the following month if they were shorted on their original stipend amount received (as noted in the grant request) the month before. The distributed amount can only be increased by submitting a new grant request.moves to another church/ministry, the funds do not follow the individual. Instead, the funds remain as temporarily restricted for the purpose to which they were originally donated, unless they are redirected in accordance with the following bullet.
- Designated contributions generally will be honored, but Reliant shall retain full discretion and control over the ultimate expenditure or use of those contributions and retains the right to discontinue funding at any time.
- Consistent with Reliant's tax-exempt qualification as a 501c3 nonprofit organization, Reliant will not issue refunds to donors from contributions received. In the unlikely event of a cancellation of the purpose or plan originally associated with a church/project fund purpose or plans , or if a foreign national who had raised support as an affiliated fundraiser Affiliated Fundraiser decided not to continue in the role of Designated Grantee for this project/church fund, Reliant will not issue refunds to donors. Reliant will that role, or if a Designated Grantee changed roles, Reliant will retain control of monies in the church/project fund and, as a first priority, will seek to use the funds for other similar Reliant Mission activities beginning with those associated with the connected church/ministry.
If the
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purpose of a church/project fund
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includes supporting the funding of a Designated Grantee
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(s)
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stipend and/or if there is an Affiliated Fundraiser for the fund, in addition to those criteria outlined above, the following also applies:
- Reasonable due diligence should be exercised to ensure that Reliant church/project fund monies are not raised or directed to known or suspected terrorists.
- In no circumstances should the church/project name be the name of the Designated Grantee. Instead, it should refer to the church/ministry project for which the Designated Grantee is providing ministry activities.
Request Form:
Field employees may request an unrestricted church fund by contacting their Program Team. Program Team submits a request for unrestricted church funds on behalf of Reliant partners.
Restricted Church/Project Funds may be requested by a Reliant employee/associate (Typically the person who will become Reliant Point Person for the fund) by submitting a Church/Project fund request form to their Program Team, which includes the following:
- Church/Project Fund purpose and details
- Signed Master Grant Agreement
Approval:
The Reliant Board of Directors delegates Reliant leadership the authority to approve church and project funds to further Reliant’s tax-exempt purposes by establishing these types of church and project funds as defined in the related policy, in a matter compliant with applicable laws and regulations and according to the requirements outlined above. If deemed necessary by Reliant leadership, the Reliant Board may be asked for their additional approval. The Program Team will oversee all church/project fund requests, including obtaining approvals, coordinating with relevant departments, and finalizing fund set up.
All approvals including approval from the Reliant board must be received prior to church/project fund creation.
Approval Workflow:
The Program Team will review and approve every unrestricted church fund request.
The Director of Organizational Affairs will review for approval every restricted church and project fund request to confirm the purpose of the fund is in alignment with Reliant's tax-exempt purpose. If secondary approval is deemed necessary by the Director of Organizational Affairs, it will be sent to the Chief Financial Officer. If the purpose varies too greatly from the normal purpose requests or from Reliant's original tax-exempt purpose, Reliant Board approval may be deemed necessary.
The Director of Organizational Affairs will also confirm that the proposed budget categories included on the restricted church/project fund request for fund distribution through grants are in alignment with the fund purpose given
Required approval related to the projected amount of the church/project fund is as follows:
- Funds projected to receive under $25,000 annually are approved by the Director of Organizational Affairs.
- Funds projected to receive between $25,000 and $100,000 annually require approval from the Director of Organizational Affairs and the Chief Financial Officer.
- Funds projected to receive over $100,000 annually require approval of the Reliant board. The Director of Organizational Affairs will create a request for board submittal.
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Reliant does not hold the fund to this pre-approved projected amount, it is simply used as a boundary for initial approval of the fund. |
Project funds whose sole purpose is to fund Designated Grantees will not be officially created until the Designated Grantees associated with the fund have been approved and signed a stipend agreement.
Fund approval authorizes the solicitation and receipt of any donations for the approved funds. Designated contributions generally will be honored, but Reliant shall retain full discretion over the ultimate expenditure or use of those contributions and retains the right to discontinue funding at any time.
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Any Reliant employee/associate may raise funds on behalf of a church/project fund.
A U.S. citizen who is not a Reliant employee/associate must become an associate with Reliant in order to raise church/project funds on behalf of Reliant. Associates are eligible to submit church/project fund reimbursements and grant requests.
Foreign nationals may raise support as a deputized Affiliate Fundraiser through a church/project fund on behalf of Reliant under the conditions that the foreign national:
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Complete a dual solicitation agreement (Dual Solicitation) if raising funds for both Reliant and another organization.
Submission Standard
Requests:
Unrestricted Church Funds may be requested by Reliant partners who have field employees/associates by contacting their Program Team. Program Team submits a request on behalf of Reliant partners. Reliant will review these requests on a case-by-case basis.
Restricted Church/Project Funds may be requested by Reliant ministry partners regardless of whether that partner has Reliant employees/associates. The individual who will become the Fund Custodian may request the funds by submitting a Church and Project Fund Request Form to their Program Team, with the following information completed:
- Church/Project Fund purpose and fund details
- Signed Master Grant Agreement (which is attached to the Church/Project Fund Request)
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Master Grant Agreement: Church/Project funds are created to receive donations, and grants are used to distribute monies for those funds. Therefore, a Master Grant Agreement must be signed at the time of submission of |
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a new church/project fund request to ensure a proper understanding of grant use when monies are distributed. The Master Grant Agreement is attached to the Church/Project fund request form and is signed by the Fund Custodian and a Reliant representative. The Fund Custodian should be appointed and previously approved for the role of Fund Custodian by the Partner prior to signing the Agreement. It includes an acknowledgment and approval of the requested purpose of the fund |
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by both parties. It also includes an acknowledgment that the |
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Fund Custodian read and agrees that all parties associated with the fund |
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Master Grant Agreements are customized for each church/project fund with information found on the church/project fund request form, but generally include acknowledgments of the following:
- Agree in confirmation that Reliant and Partner have a signed Memorandum of Understanding
- Agree that the grants distributed must be used consistent with the agreed-upon purpose of the fund.
- Agree that if the purpose of the church/project fund changes, an addendum to change the purpose outlined in this Master Grant Agreement is required.
- Agree that I have read and agree that we (the church/ministry and myself) will follow the information outlined in the Funds and Grant-Making Policy for Churches and Projects.
- Agree that I have read and agree that we (the church/ministry and myself) will follow the information outlined in the Church and Project Fund Standard
- Agree that I have read and agree that we (the church/ministry and myself) will follow the Grant-Making Standard
Many other items are outlined on the policy/standard but we wanted to highlight the following...
- I understand that all contributions are the sole property of Reliant; Reliant maintains full control of the donated funds and ultimate discretion as to their use for Reliant’s ministry purposes.
- I confirm that clarity will be given to donors and any affiliated fundraiser and designated grantees so that they understand the church/project funds are supporting a pre-approved ministry purpose by a Reliant-approved church/project and ministry partner and are not supporting any individual(s).
- Reliant will not act as a conduit of funds for any recipient.
- Reliant grants cannot be used to cause any private inurement or improper private benefit to occur.
- Reliant will take reasonable steps of due diligence to ensure that it is not otherwise assisting known or suspected terrorists through its foreign grant-making process.
- We (the church/ministry and myself) agree to communicate with clarity with all Designated Grantees that the Designated Grantee(s) will be responsible for applicable payment of taxes, withholding for employment taxes, compliance with local law, etc. A clear acknowledgment of these expectations for local compliance will also be noted in the Stipend Agreement that will be required to be signed by all Designated Grantees.
Add to the tab for the Master Grant Agreement
I agree that as the Reliant Point Person, I am signing on behalf of the (fill in the blank) church/ministry and that they are fully aware and fully understand the implications of my role.
I agree that I am taking on the responsibility of the Reliant Point Person as outlined in the policy and standard.
I agree that I will inform the church/ministry of all of the agreed-upon policies and standards related to the church/project fund that will be created for the church/ministry and associated grant distributions.
Please write YES in agreement of the above statements. ____-
By submitting this completed Master Grant Agreement, I am agreeing that the information stated above is correct and that I understand and am in full agreement with the information outlined above.
Full Name
Current Date
Purpose:
Purpose is:
If purpose is to have designated grantees...
what will be their activities
Reliant acknowledges that a Designated Grantee receives a stipend to fulfill the purpose of the fund through conducting the ministry activities outlined on the master grant agreement, and due to these ministry activities, may not be able to devote time to other work activities sufficient to support the Designated Grantee's family, therefore Reliant recognizes that some of the funds may be used for personal expenses.
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will follow the Policy and Standards. If the purpose of the church/project fund changes, an addendum to change the purpose outlined in Master Grant Agreement is required and must be signed by both parties. See Master Grant Agreement for a sample of what is attached to the request form. |
Approval:
The Reliant Board of Directors delegates to Reliant leadership the authority to approve church and project funds. If deemed necessary by Reliant leadership, the Reliant Board may be asked for their additional approval. The Program Team will oversee all church/project fund requests, including obtaining approvals, coordinating with relevant departments, and finalizing fund set up.
All church and project fund requests must be vetted first by the Program Team to confirm the church/ministry partnership with Reliant (including the existence of a signed/executed Memo of Understanding or a Non-Employment Partnership Memorandum of Understanding) and to confirm that this request is one that they believe Reliant should move forward on.
All approvals (including approval from the Reliant board) must be received prior to church/project fund creation.
Approval Workflow:
Unrestricted Church Funds requests are reviewed and approved by the Program Team and shared with Accounting to process the fund creation.
Restricted Church/Project Fund requests undergo review and approval by The Director of Organizational Affairs to confirm the following:
- The purpose of the fund is in alignment with Reliant's tax-exempt purpose as outlined in the policy.
- If there are questions related to the purpose of the fund, additional approval by the Chief Financial Officer, Chief Executive Officer, or Board of Directors may be deemed necessary.
- The proposed budget categories included on the restricted church/project fund request for fund distribution through grants are in alignment with the fund purpose given.
- If additional approval is required related to the projected amount of the church/project fund according to the following:
- Funds projected to annually receive under $25,000 are approved by the Director of Organizational Affairs.
- Funds projected to annually receive between $25,000 and $100,000 require approval from the Director of Organizational Affairs and the Chief Financial Officer.
- Funds projected to annually receive over $100,000 require approval of the Reliant board. The Director of Organizational Affairs will submit a request to the board.
Fund approval authorizes fund creation by Accounting as well as the solicitation and receipt of any donations for the approved funds.
