Policies and Principles for Tax Deductible Donations to The Global Forefront, Inc. (“Forefront Experience”) Principles
• To maximize the positive impact of Forefront Experience ministry through all donations
• To be knowledgeable of, and adequately compliant with, IRS rules and regulations, and known best practices to support the tax deductibility of donations entrusted to Forefront Experience by donors
• To consider restrictions and preferences expressed by donors to the extent allowable and practicable
• To apply a reasonable balance of serious attention to important and fundamental principles, practical and efficient processes and approaches, and Christian grace to accomplish Forefront Experience ministry purposes
Policies (Numbered for Reference Only)
1. Standard Statement and Reference. Forefront Experience is a 501(c)(3) non-profit organization. Your donations are tax deductible based on the policies and principles at www.forefrontexperience.com/policies.
2. Qualified Charity. Forefront Experience is a non-profit corporation and has been determined by the Internal Revenue Service to be tax-exempt as a 501(c)(3) organization. EIN 47-1540999.
3. Donations Irrevocable. Tax-deductible contributions must be irrevocable; therefore, all donations are non-refundable and non-transferable.
4. Unrestricted and Restricted Donations. Forefront Experience gratefully accepts contributions to support our overall ministry and also recognizes the desire by some donors for Forefront Experience to restrict the use of their donations to specified purposes, such as particular mission trips, staff fundraising, relief efforts, or other important causes. Restricted donations are used to support the purpose for which they were originally intended until that purpose has been satisfied. After which, any excess funds are used to further the ministries of Forefront Experience. Donations expressing a preference for an individual, who may have made the appeal, are considered to be restricted to the purpose for which such person is currently raising funds.
5. Applicability of Donor Restrictions. Forefront Experience strives for transparency and clarity in our materials and through communications with our staff and deputized fundraisers. Unless donor restrictions are specified, donations will be considered available to impact every aspect of Forefront Experience’ overall mission, including but not limited to, the types of purposes described in materials presented to donors. When a donor explicitly states an intention to restrict donations to a specific purpose, Forefront Experience uses all reasonable efforts to follow the donor’s intent. However, a donation restricted only for the personal benefit of, or use by, an individual would not be tax deductible and therefore such restriction cannot be accepted. Instead, donors may express a preference that the donation be used toward a particular purpose and thereby support a particular deputized fundraiser’s or other individual’s participation with Forefront Experience in accomplishing that purpose. Accordingly, donations expressing a preference for an individual who may have made the appeal are considered to be restricted for the purpose for which such individual is currently involved with deputized fundraising. Forefront Experience will use reasonable efforts to consider donor preferences, but does not believe its donors would want it to be so detailed in the application of preferences so as to inhibit, or unnecessarily increase the cost of, accomplishing the broader purpose for which the donation was made. Therefore, in the reasonable use and application of donations, numerous practical changes may be necessary. Forefront Experience considers this to be consistent with the donor’s intent as long as the overall mission of FOREFRONT EXPERIENCE is appropriately furthered. Examples include, but are not limited to: (1) changes in the timing, routing, or duration of mission trips or the assignment of preferenced participants to particular trips, (2) changes in the timing, quantity, costs, or the composition of potential projects, programs or approaches, or (3) other changes in the timing or delivery of intended ministry, services, and benefits. Whether these practical circumstances are reiterated or not, donations are considered to be intended for practically broad purposes even when possible discrete projects, programs, or activities are presented as examples in written solicitation materials or in discussions with donors. If donors’ written requests for restricted purposes or preferences appear to be impractically precise or inconsistent with Forefront Experience purposes, Forefront Experience may decide that it should not accept such donations, although it is expected that such situations will be rare.
6. Deputized Fundraising. Forefront Experience utilizes the accepted practice called “deputized fundraising” to raise donations to support many of our activities. Individuals, who desire to participate in mission trips, to join Forefront Experience staff, or to be involved in other projects, programs or activities (collectively “purposes”), become fundraisers for Forefront Experience with the mutual intention of participating, under Forefront Experience’ direction, in carrying out the purpose(s) for which they are appealing for donations. It is acceptable practice to agree on and monitor success toward individual and project fundraising goals. However, as the qualified “charity,” Forefront Experience must maintain discretion and control over the use of all tax-deductible contributions, without any obligation to directly benefit the fundraiser or any other individual. Accordingly, it is not acceptable for tax deductible contributions raised by a deputized fundraiser to be set aside to reimburse expenses incurred by and applicable only to such individual fundraiser or participant.
7. Deputized Fundraising – Excess Funds. If an individual’s fundraising goal for a mission trip or other purpose is met and the individual participates in the trip/program, their objective, their donors’ objectives, and Forefront Experience’ ministry objectives are satisfied. However, for example, if the participant does not participate directly or proportionately in using the donations raised or raises funds above the goal, Forefront Experience cannot be expected to give the participant or the donors alternative direct benefits or refunds based on the amount of funds raised and used. This would not be consistent with Forefront Experience maintaining discretion and control. Accordingly, consistent with Forefront Experience’ overall policy described under Item 4 above, donations in excess of the individual goal for a deputized fundraiser, regardless of the reason for the excess, are used to support the mission trip or other purpose for which they were originally intended until that purpose has been satisfied; after which, any excess funds will be used for other purposes consistent with Forefront Experience’ ministries.
8. Deputized Fundraising – Reporting. Donations expressing a preference for a particular deputized fundraiser are accumulated in a fundraising summary to communicate progress toward each person’s fundraising goal, as well as the overall goal for the intended trip or other purpose. The fundraising summary is for informational purposes only. Such reporting should in no way be interpreted to indicate that fundraisers or donors may exercise any rights to or control over the gross or net amounts reflected in these fundraising summaries.
9. Deputized Fundraising – Shortfalls from Goals. For each mission trip or other purpose for which Forefront Experience employs deputized fundraising, goals for individual participant/fundraisers are set and communicated well prior to trip launch. Even though these goals might sometimes be referred to as the price or the cost of a trip, they do not constitute a traditional contractual relationship. Nonetheless, Forefront Experience believes the individual and the other trip participants have the right to expect each participant to use all reasonable efforts and means to achieve both the agreed upon benchmarks and the ultimate goal. In those cases where a participant leaves or completes a trip without reaching either the proportionate or full goal, Forefront Experience expects the participant to continue striving to raise funds until their goal is fully met. Forefront Experience reserves the right to terminate a participant from a trip or other activity for any purpose in its sole discretion.
10. Reporting to Donors. Donors will receive acknowledgements during the year confirming the amounts and dates of gifts, as well as calendar year-end tax receipts documenting such gifts as deductible contributions for income tax purposes in the United States. Each donor is advised to consult his or her personal income tax advisor for the applicability of such contributions in his or her own circumstances.
11. Reporting Goods or Services Provided. Normally, Forefront Experience mission trips and other activities do not involve providing any goods or services to donors in partial return for the donations. In those cases where there might be token take-away items, such as tee shirts or journals, that are intended primarily for use on a trip, the fair market value of such typically used items is considered by Forefront Experience to be insubstantial with the donations being 100% tax deductible. In any case where Forefront Experience provides goods or services that have value to the donor in excess of that year’s IRS token exception rules, such estimated value will be disclosed by separate communication or together with the calendar year-end receipt.
12. Donations by Donors Located Outside the United States. Forefront Experience is incorporated and qualified as a 501(c)(3) non-profit organization in the United States. Therefore, Forefront Experience year-end tax receipts are intended to confirm tax-deductibility only as it applies for U.S. income tax purposes. Deductibility of donations or contributions varies in other countries based on local laws, treaties with the U.S., etc. Therefore, donors based outside the U.S. should consult with a qualified advisor regarding the tax or equivalent rules covering deductibility in their applicable non-U.S. jurisdiction.