Vouchers

 

Tzdaka Vchayim donor advised fund

Tzdaka Vchayim is an organization incorporated in New York State as Not-for-Profit and exempt from taxes under Internal Revenue Code 501 (c) (3).  Contributions to Tzdaka Vchayim are tax deductible under Internal Revenue Code 172.

 

In order to establish a donor-advised contribution program compliant with internal Revenue Service rules and regulations, Tzdaka Vchayim (TVC) has adopted the following policies and procedures:

 

  1. TVC will accept cash donations from individuals and organizations.
  2. TVC will provide a receipt for a tax deductible donation for the full amount of each donation received.
  3. Donations are irrevocable and the funds become the property of TVC.  Distributions to charity are subject to the review and discretion of TVC.
  4. Five percent of each donation will be used for TVC’s charity and administration.
  5. Donors to TVC may recommend to whom 95% of the funds will be distributed.  The recommendation will be done by means of Vouchers.  TVC will not accept personal, telephone or alternate written recommendations.  Each donor will provide a sample signature to TVC.
  6. TVC is not obligated to disburse funds in accordance with the donor’s recommendation, but will investigate prospective recipients and determine whether they qualify under IRS rules.
  7. TVC will provide the donor with one or more booklets of Vouchers in denominations of $1, $5, $10, $20 and $100, as requested by the donor.  The face amounts of the vouchers will equal 95% of the donation to TVC.
  8. Each Voucher will bear a unique bar code which will identify the recommendation as coming from a particular donor.
  9. Donors will enter the date, name of recommended recipient and the donor’s signature in the spaces provided on the Voucher.
  10. Recipients will present Vouchers to TVC together with their credentials and receive a check in the amount of the Vouchers they present.  A service charge of 1.5% will be deducted to cover the cost of researching, assembling and maintaining the files of recipient eligibility.
  11. In the event a Voucher does not bear a date, name of recommended recipient, donor’s signature and a complete bar code, TVC may consider it invalid and refuse to consider the recommendation.
  12. TVC’s office will be open by appointment to enable holders of Vouchers to redeem them.
  13. TVC will pre-approve individual recipients and provide them with certificates authorizing them to solicit funds.
  14. TVC recommends that potential recipients obtain a certificate to ensure that they will be eligible to receive distributions from TVC.
  15. Recommendations for Grants to individuals for travel, study or similar purposes will not be honored.
  16. Recommendation to distribute funds to individuals related to the donors will not be honored, regardless of their otherwise eligible status.
  17. Representatives of domestic organizations will be asked to present evidence of the organization’s tax exempt status and the representative’s authorization to solicit funds of their behalf.
  18. Recommendation to distribute funds to domestic organizations 35% or more controlled by the donor will not be honored.
  19. Recommendations to distribute funds to Supporting Organizations as defined in IRC 509(a)(3)  or to other donor advised funds will not be honored.
  20. TVC will maintain records of the tax exempt and other eligibility status of recipients for three years from the date of filing the annual tax return (due May 15 of each year).
  21. Funds that are dormant for six months will be distributed to charities at the discretion of TVC.
  22. Donated funds will be maintained in insured bank accounts.  Donors will not have an option to recommend investments and accounts will not be segregated into individual accounts.
  23. TVC will maintain a bookkeeping system, under the supervision of an accountant, to ensure donors transactions are properly recorded in a timely manner.
  24. Each quarter year, TVC will send an itemized account statement, detailing receipts and disbursements of your funds.  The year end statements, to be mailed in January, will include transactions for the entire prior year.
  25. At least one member of TVC’s board of directors will be a financial expert, capable of overseeing operations and ensuring compliance with IRS regulations and proper financial reporting.
  26. TVC’s financial statements, including the donor’s transactions will be audited annually by an independent CPA.
  27. Donor’s privacy is very important to TVC.  We will not divulge any donor’s information, even to recommended recipients.  We will not sell or share donor lists.

Criteria for distributions to Domestic Organizations

 

  1. Is the voucher valid?                                                                         ___
  2. Did the recipient provide the name and EIN of an organization?               ___
  3. Did you verify eligibility on IRS web site?                                       ___
  4. Did you ensure the recipient is authorized to accept donations for this organization?                                                                               ___
  5. Is the organization controlled 35% by the donor?                                      ___
  6. Is the organization a 509(a) (3) Supporting Organization?               ___
  7. Is the organization a donor advised fund?                                        ___
  8. Is the mission of the organization one that we support?                            ___
  9. Does TVC have a file on this organization?                                               ___
  10. Place in the file:

a)     A copy of the IRS listing                                                                  ___

b)    Names of the Board of Directors                                             ___

c)     Recipient’s authorization                                                                  ___

 

 

Criteria for distributions to Individuals

 

  1. Is the voucher valid?                                                                         ___
  2. Did the recipient provide appropriate identification?                                 ___
  3. Did the recipient provide appropriate proof of his need?                          ___
  4. Did the recipient provide evidence of his intended use of the funds?         ___
  5. Does the recipients name appear on the list of SPECIALLY DESIGNATED NATIONALS AND BLOCKED PERSONS?                                                                                   ___
  6. Did the recipient provide usable references?                                              ___
  7. Did you speak to the references, and document their response?                ___
  8. Place in the file:

a)     Identification documents                                                              ___

b)    Proof of need and use of funds                                                     ___

c)     Documentation of search of the SDN list                                              ___

d)    Documentation of contact with references and their response               ___

 

 

 

Criteria for distributions to Foreign Organizations

 

  1. Is the voucher valid?                                                                         ___
  2. Did you verify tax exempt status in the organization’s tax home?   ___
  3. Did you verify the organization is authorized to receive tax deductible donations in its tax home?                                                            ___
  4. Did you verify the organization is properly registered in its tax home?     ___
  5. Did you obtain a certification of names of management and compliance

with local laws and regulations from the organization?                                  ___

  1. Did you obtain a budget and project description?                                      ___
  2. Do any members of management appear on the list of SPECIALLY

DESIGNATED NATIONALS AND BLOCKED PERSONS?                                                                          ___

  1. Did you ensure the recipient is authorized to accept donations for this organization?                                                                               ___
  2. Is the organization controlled 35% by the donor?                                      ___
  3. Is the organization a 509(a) (3) Supporting Organization?               ___
  4. Is the mission of the organization one that we support?                            ___
  5. Does TVC have a file on this organization?                                               ___
  6. Are all the documents in English or accompanied by and English

translation?                                                                                            ___

  1. Place in the file:

a)     Incorporation                                                                               ___

b)    Tax exempt status document                                                                 ___

c)     Authorization to receive tax deductible donations                       ___

d)    Registration document                                                                 ___

e)     Names of the Board of Directors                                                 ___

f)      Certification                                                                                 ___

e)     Documentation of search of the SDN list                                              ___

g)     Budget and Program Description                                                 ___

h)    Recipient’s authorization                                                             ___