Originally
approved by the Board of Directors of
the Society of Environmental Journalists
on March 13, 1999 and subsequently
revised. Date of latest revision: January 13, 2007.
This document is intended to
incorporate and supersede all previous
financial policies of the Board and the
organization. The policies are binding
on SEJ employees and board members in
their official actions. Exceptions are
allowed only if approved in advance by
the Executive Committee with a report to
the full Board at the next regular
meeting. Throughout this document, where
duties are assigned to the Executive
Director, it is understood that the
Executive Director may delegate such
duties to other employees or to
consultants and other non-employees.
However, in all such cases, the Executive
Director shall retain full and sole
responsibility for ensuring that the
delegated duties are properly carried
out.
CONTENTS
A. Policy on acceptability of income
sources
B. Policy on
fundraising by university and host
sponsors and co-sponsors of SEJ
Events
C. Policy on
expenses
D. Financial
controls and reporting
E. Investment
policy
F. 21st Century
Fund Endowment Fundraising
Policy
G. Tax status
policy
A. Policy On Acceptability of Income
Sources
From current practice, 3/14/98 finance
committee draft policy, and 4/5/03 and 3/20/04 board amendments.
1. Direct program
revenues, including membership dues;
conference registrations; cash from
sales of subscriptions and other
merchandise; mailing list rentals in
print, electronic or other form; and
similar forms of earned income as may
be identified and approved by the
Board, are acceptable.
2. Grants from
charitable foundations, educational
institutions and media companies are
acceptable if given for unrestricted
use or purposes consistent with the
organization's strategic
plan.
3. Gifts or bequests
from individuals may be accepted by the
Executive Director without Board
approval if there are no restrictions
on their use and their value is $10,000
or less. Prior Board approval is
required for restricted gifts from
individuals and all gifts from
individuals of more than
$10,000.
4. Gifts from
non-media corporations, government
agencies, and other organizations
(other than charitable foundations,
educational institutions and media
companies) are unacceptable unless
explicitly approved in advance by the
Board. This prohibition shall not apply to matching gifts provided by corporations or other organizations through established employer matching gifts programs, nor shall it apply
to in-kind gifts from such
corporations, agencies or
organizations, including speaker time
and travel, documents, admittance to facilities, local transportation to or within facilities and nearby areas, or to revenues
received under paragraph A(1), but it
shall apply to food and drink
donations. SEJ members attending shall
be advised prior to the event if such
an entity is covering the cost of
admittance to facilities, or of local
transportation to or within facilities
and nearby areas. SEJ will advise any interested participant of the per capita costs.
B. Policy on fundraising by
university and host sponsors and
co-sponsors of SEJ
Events
Adopted by the SEJ board January 12, 2002 and amended January 28, 2006. Please see related Policy Regarding SEJ
endorsements, Co-sponsorships and
Partnerships for Journalism and
Environmental Education
Programs.
1. SEJ welcomes and
appreciates partnerships with
universities or other educational
institutions for national and regional
programs.
It should be understood by all parties that, while working cooperatively with host institutions, SEJ's board, volunteer leadership and staff are to remain in control of all conference programming, including agenda, invited speakers and session topics, and that no outside funding sources may be represented as sponsors or co-sponsors of SEJ events, without prior approval of SEJ's conference board representative and Executive Director. These funders may be listed in programs and/or on unobtrusive signage as contributors to and/or supporters of the host institution, but any such messages must be approved in advance by SEJ's conference board representative and Executive Director.
SEJ understands that these institutions may at times need to undertake their own fundraising efforts to meet their partnership commitments, and that in so doing these institutions are not bound by SEJ's internal policies governing the solicitation of grants and sponsorships.
SEJ requests, however, that when seeking outside financial support, hosts, sponsors and co-sponsors make every effort to seek a balance of sources. For example, whenever possible, corporate and/or government support should be balanced by support from environmental organizations, individuals and/or other institutions.
C. Policy On
Expenses
From current practice and
1995 board policy document.
1. SEJ will pay
long-distance transportation, local
ground transportation or lodging, but
not more than one of the three, for
board members attending board meetings
when reimbursement is not available
from the board member's employer or
another source. Board members shall
make every effort to minimize SEJ
expenses for travel, including
selecting the lowest fares available
and making reservations at least 21
days in advance. No airport transfers
shall be paid. SEJ expenses shall not
exceed $1,500 per year per board member
for travel to board meetings, unless
the SEJ Board approves a special
exception in advance of travel. SEJ
shall not pay for board member travel
or lodging for the SEJ annual conference.
Meals for board members may be paid as
part of a board meeting when board
business is conducted.
2. For SEJ staff and
contractors, all reasonable and
acceptable travel expenses will be paid
for assigned business-related trips.
Acceptable expenses include
transportation, hotel, meals, telephone
and sundries. Meal expenses and mileage
reimbursement shall be limited to the
per diem rate set by the Internal
Revenue Service. One safe arrival phone
call is permitted. Otherwise, only
SEJ-related calls, using the most
economical calling method, will be
covered. Hotels and airlines used shall
be economical, clean and safe. First
class travel and accommodations will
not be reimbursed.
3. Reimbursement
requests for SEJ staff, contractors and
board members must be filed within 90
days of the conclusion of the trip.
Reimbursement requests must be sent to
the SEJ headquarters with receipts
attached.
4. No alcohol
purchases shall be made or reimbursed
by SEJ.
D. Financial Controls and
Reporting
Amended by the SEJ board July 19, 2003; January 28, 2006; and April 28, 2007.
1. The Executive
Director, in consultation with the
Treasurer and Finance and Fundraising
Committee, shall prepare an annual
budget for the organization that
provides for such programs and support
services as are outlined in the current
strategic plan, which
shall form the basis for all SEJ
spending.
2. The annual budget
shall be considered and approved by the
Board of Directors prior to the
beginning of each fiscal year in a
format created by the Executive
Director and approved by the Finance
and Fundraising Committee.
3. The Executive
Director shall provide each board
member with a quarterly balance sheet
and narrative report on actual and
projected income/expense and cash flow,
with any significant variances from the
approved budget identified and
explained. The Executive Director shall
provide detailed income/expense
spreadsheets, cash flow spreadsheet,
and all bank/investment account
statements, as back up to summary
narrative reports, to any board member
at any time by request and at least
quarterly to SEJ's Treasurer.
4. During the budget
year, any significant change of income
or expenditure shall be reported by the
Executive Director to the Treasurer.
For the purposes of this paragraph, a
significant change shall be one which,
in the opinion of the Treasurer, would
significantly alter the annual plan of
operation, or which would result in a
change of more than 10 percent from the
total amount of the organization's
approved budget. Any such report shall
be prepared by the Executive Director,
in consultation with the Treasurer, and
submitted by the Treasurer for review
by the Board of Directors at their next
regular meeting.
5. An Audit Committee, appointed by the board, shall arrange for and oversee an annual independent audit of the organization's financial statements. The Committee shall be composed of three members, at least one of whom shall be a board member other than the Treasurer, and one of whom shall be a non-board SEJ member. Committee members will serve staggered three-year terms. The chair of the committee, who will be the primary liaison between the committee and the Executive Director and the auditor, must be a board member. The Committee shall meet at times and in the manner of its choosing, but should make every effort to hold one in-person meeting per year with the Executive Director and auditor, within current budget constraints.
The Committee's work shall be
guided by SEJ's Accounting Manual, and
its annual duties shall include:
-
review of all new laws,
regulations and best practices
regarding nonprofit sector finances
and audit procedures;
-
selection of an independent
auditor, and determination of the
auditor's compensation, in
consultation with the Executive
Director;
-
entrance and exit
conferences with auditor, and other
conversations as
needed;
-
review and determination of
acceptability of audit, Management
Letter and any other supporting
documents provided by
auditor;
-
ensuring the completion of
the audit by August 15 of the
following year;
-
providing a written report
on and copies of the finished audit,
supporting documents and management's
response to the full board by
December 15 of the following
year;
-
approval of any non-audit
services to be provided to SEJ by
auditor/auditing firm;
-
advising the Executive
Director as needed on possible
revisions to the SEJ Accounting
Manual.
As part of the audit process,
the Executive Director shall prepare a
written response to all substantial
questions, suggestions and comments
offered by the auditor and Audit
Committee, which shall be included in the
Committee's report to the board.
The Executive Director shall
also arrange to have the audit report
and the Committee's report posted on
SEJ's Web site in a timely manner and
shall make a printed copy of the audit
and Committee report available upon
request.
6. The Executive
Director, in consultation with the
Treasurer, shall file all necessary
forms with local, state and federal tax
agencies.
7. The Executive
Director and her designees shall have
the authority to sign all checks of the
organization. For all checks in amounts
greater than $5,000 the Executive
Director shall provide a copy, and an
explanation, if the purpose of the
check is not obvious, to the Treasurer
within 30 days of their having been
written. The check copy will include an
acknowledgment and approval line, which
the Treasurer shall sign and return to
the Executive Director within 30 days,
for filing with relevant bank
statement.
E. Investment
Policy
From finance committee
discussions prior to 7/98 board meeting,
current practice, NCNB sample
guidelines, and 7/04 board amendment.
1. All SEJ operating
funds shall be invested for maximum
income consistent with the
organization's cash needs and full
protection of the investment principal.
Examples of acceptable investments
include treasury bills, certificates of
deposits, and demand accounts such as
checking, savings or money market
accounts.
2. All SEJ endowment funds shall be invested in a manner designed for long-term growth and income. Fund management will tolerate moderate risk and strive to achieve its goals through a diversified portfolio of investments. The portfolio shall be selected by the executive director, in consultation with his/her chosen licensed investment adviser(s) and the SEJ board treasurer, and may include index mutual funds, bonds, government securities and certificates of deposit. No individual stocks or mutual funds other than index funds may be held, except any stocks donated to the organization, which must be sold within six months of receipt of the gift.
3. Full discretion,
consistent with the principles above,
is delegated to the Executive Director
in consultation with the Treasurer and
Finance and Fundraising Committee to
determine the mix of assets, selection
of securities and timing of
transactions unless otherwise
determined by the Board.
4. All investment
portfolios and results shall be
reviewed monthly by the Executive
Director, quarterly by the Treasurer
and at least annually by the Finance
and Fundraising Committee.
F. 21st Century Fund Endowment
Fundraising Policy
Adopted January 24, 2004,
St. Petersburg, Florida; amended March 20, 2004, Ann Arbor, Michigan.
1. Principles:
Fundraising for SEJ's
21st Century Fund
Endowment shall be guided by the
following principles:
SUPPORT FOR SEJ'S MISSION:
SEJ may solicit and accept donations
to its endowment from any and all
individuals who support SEJ's mission
to improve the quality, accuracy and
visibility of environmental
journalism, without regard to their
opinions or positions with respect to
environmental issues.
Consistent with its
long-standing policy, SEJ will not
solicit or accept donations from any
advocacy group, non-media corporation
or government agency without the
explicit prior approval of the SEJ
board.
INDEPENDENCE AND
INTEGRITY: SEJ shall retain full
control over the use of income from
the 21st Century Fund. The
organization will accept no
conditions or restrictions, express
or implied, on any donations to the
fund, and reserves the right to
decline or return any donation which,
in the opinion of the board or the
board's designees, may conflict with
these principles or otherwise damage
the integrity of the
organization.
TRANSPARENCY:
Solicitation, review and acceptance
of all donations to the 21st Century
Fund shall be conducted in accordance
with these Guidelines, which will be
considered among the organization's
governing documents and be readily
available to all members of the
organization and general public. No
anonymous donations will be
accepted.
Investment and management
of the funds shall, likewise, be
conducted in accordance with a set of
governing Endowment Financial
Guidelines.
DIVERSITY OF SOURCES: So
as not to be, or appear to be, overly
dependent on donations from any
particular sector or type of
individuals beyond the journalism
community, SEJ shall strive to raise
at least 25% of its 21st Century Fund
from SEJ members, founding and other
former board members and other
journalism leaders, and to raise the
remainder from a broad array of
individual donors.
RECOGNITION OF DONORS: In
return for their support, all donors
shall be acknowledged graciously,
thanked appropriately and kept
apprised of the ongoing activities of
the organization.
2. Purpose:
The 21st Century Fund is
SEJ's general endowment. The purpose of
the Fund is to secure the
organization's future by providing a
vital layer of protection from the
uncertainties of year-to-year
fundraising for the operating budget.
The Fund's proceeds will be used to
help fund core operations (including
staff and program costs) as well as
special projects deemed by the board to
be of great importance to SEJ.
3. Fundraising
a. ACCEPTABLE SOURCES
OF FUNDS: SEJ may accept unrestricted
donations of any amount to the 21st
Century Fund from individuals who
support SEJ's mission, without regard
to their opinions or positions with
respect to environmental issues. SEJ
may also accept unrestricted 21st
Century Fund donations from
foundations. SEJ will not accept gifts
to the 21st Century Fund from non-media
corporations, government agencies or
advocacy groups unless explicitly
approved in advance by the
Board.
b. CONTROL OF FUND:
SEJ shall retain full control over
the use of income from the 21st
Century Fund. The organization will
accept no conditions or restrictions,
express or implied, on any donations
to this fund. This principle shall be
included in all written and verbal
solicitations, and/or
acknowledgements, and shall be
acknowledged in writing by all donors
of $5,000 or more.
c. RIGHT OF DECLINE
AND RETURN: SEJ reserves the right to
decline or return any donation to the
21st Century Fund which, in the
opinion of the board or the board's
designees, may conflict with the
organization's independence or
otherwise damage its
integrity.
d. BALANCE OF
DONORS: SEJ shall strive for an array
of individual donors to the 21st
Century Fund, so as not to be, or
appear to be, overly dependent on
donations from any particular sector,
ideological perspective or type of
individuals beyond the journalism
community.
e. REVIEW AND
APPROVAL PROCESS: Solicitation and
review of prospective donations of
$5,000 or more, including review of
any unsolicited donations of such
size, shall be carried out by an
Endowment Committee appointed by and
responsible to the SEJ board, in
concert with the Executive Director
and other appropriate staff members.
The board may also authorize others
outside the organization to solicit
such funds on its behalf, provided
that such persons work in concert
with and are subject to the authority
of the Committee. No donations of
$5,000 or more may be accepted
through any other channels or
processes.
The size of the endowment
committee and the terms of its
members shall be determined by the
Board, but the Committee shall always
include the current Board President
and Treasurer. The Executive Director
shall serve in a non-voting
capacity.
Prospective donations of
$5,000 or more must be approved by a
majority of the Committee. The
Treasurer and President each have the
power to veto any prospective
solicitation or donation. All
prospective donations of $5,000 or
more shall then be subject to the
review of the full Board.
Donations of less than
$5,000 need not be pre-screened, but
the Board reserves the right to
reject or return these, as well as
larger donations, for any reason and
at any time.
f. DISCLOSURE OF
DONORS: SEJ will accept no anonymous
donations to the 21st Century
Fund.
The names of all donors,
and the relative levels of their
gifts, will be compiled and updated
annually and will be made available
to anyone who asks. SEJ members shall
be informed, at least annually, of
the availability of the list.
As under current practice,
each year's IRS Form 990 (which
includes a listing of all donations
of $5,000 or more) shall be posted on SEJ's
website and a paper copy made
available upon request.
g. CORPORATE MATCHING GIFT POLICIES:
Many companies offer programs that
match employee contributions to quality
charitable organizations. As a 501(c)(3)
organization, SEJ is eligible to benefit from
these matching gift programs.
All letters of appeal and other
materials, including web-based information,
prepared for the SEJ 21st Century Endowment
Fund should ask prospective donors to check
with their employer, or spouse's employer, to
see if it participates in a matching gift program.
Donors who work for companies that
match gifts must obtain a "matching gift form,"
usually from their human resources departments.
The forms must be completed and returned to
the appropriate company department for
processing.
Matching corporate gifts to the
SEJ 21 Century Endowment Fund will be applied
to the individual donor's contribution. Employer
matching funds shall be acknowledged as such,
consistent with Section F, 3, f above.
As noted under, F, 3, c, above, SEJ
reserves the right to decline or return any
donation to the 21st Century Endowment Fund.
4. Management, Investment
& Spending
Existing language
— from revision approved by board
7.03. Amended by the board January 13, 2007.
a. MANAGEMENT: The 21st Century Fund shall be managed and reported to the Board and Independent Auditor by the Executive Director with reference to two internal bookkeeping accounts: "21st CenturyDonor" (funds contributed by individual and institutional donors) and "21st CenturyInternal" (funds transferred from SEJ's operating budget by action of the Board). These funds may be co-mingled in a single investment account, provided that strict accounting records are kept and reported, to identify dollars considered to be within each category.
The "21st CenturyDonor" account is a permanently-restricted account. Donations deposited in this account may not be transferred to another SEJ account. Only the interest, dividends and/or realized capital gains from this account may be used by the organization.
The "21st CenturyInternal" account is a board-restricted account. Interest, dividends, and/or capital gains from this account may be used by the organization. In addition, by action of the Board, assets transferred into this account may be drawn upon to help pay for endowment fundraising-related expenses, or returned to SEJ's general operating accounts.
b. INVESTMENT: Assets in the 21st Century Fund shall be prudently invested to balance growth with protection of the principal of the underlying assets, consistent with the policies stated in paragraph E, Investment Policy, above.
c. DISSOLUTION: Should SEJ ever cease to exist, the Board at the time of dissolution shall donate the assets of the 21st Century Fund to another journalism education organization or academic institution in support of programs to improve the quality, accuracy and visibility of environmental reporting.
G. Tax Status
Policy
From SEJ attorney Gail
Ross, memo 3/26/93.
1. To preserve the
organization's 501(c)(3) tax-exempt
status, the Board through its strategic plan shall
ensure that the organization is
operated exclusively for qualified
exempt purposes, including charitable
and educational purposes, and that no
more than an insubstantial portion of
the organization's activities are
devoted to the furtherance of
non-exempt purposes. Examples of
non-exempt purposes might include a
members-only job bank or health
insurance program, or other activities
that result solely in a private benefit
without serving an overriding public
interest.
2. No part of the
organization's activities may
constitute intervention or
participation in any political campaign
on behalf of any candidate for public
office. No substantial part of the
organization's activities may consist
of political, lobbying or non-exempt
purposes as defined in paragraph G(1)
above.
3. The organization
shall offer no guidance to donors about
the deductibility of their gifts other
than to inform them that SEJ is a
501(c)(3) organization, gifts to which
may be tax deductible under U.S. tax
laws.
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