Financial Management in any organization is paramount to its success. Because we attach priority to meeting our financial obligations, we have decided to do the following;
- LIBAUSA has an obligation to act as responsible stewards in managing its financial resources.
- LIBAUSA must comply with all legal and financial requirements and shall adhere to sound accounting principles that produce reliable financial information, ensure fiscal responsibility and build public trust.
- LIBAUSA shall use its financial resources to accomplish its missions in effective and efficient ways and shall establish clear policies and practices to regularly monitor how funds are used.
- LIBAUSA shall seek to maintain and sustain a business model that will offer reliable, flexible and diverse resources to accomplish the organization’s mission.
- LIBA’S board has a fiduciary duty to ensure that the assets of the association are used in accordance with donors’ intent.
- LIBAUSA board of directors shall ensure prudent Financial Management by adopting financial policies with the most important being “Conflict of Interest”. Financial policies that clarify the roles, authority, and responsibilities for essential financial management activities and decisions.
FINANCIAL TRANSACTIONS WITH INSIDERS
To ensure financial control and transparency, we have decided to conduct business in the following manner;
- No advances of funds to employees, officers, or directors are authorized.
- Direct and necessary expenses including travel for meetings and other activities related to carrying out responsibilities shall be reimbursed.
- In no case shall LIBA borrow funds from any employee, officer, or director of the association without specific authorization from the Board of Directors.
- Submit operating and capital budgets to the Finance Committee in time for reasonable approval by the Board prior to each fiscal year.
- Use responsible assumptions and projections as background, with the general goal of an unrestricted surplus.
- LIBA will accept stock or other negotiable instruments as a vehicle for donors to transfer assets to the association. Transfer and recording the value of the asset shall be done in a consistent manner and in compliance with accounting standards.
- LIBA shall accept contributions of goods or services other than cash that are related to the programs and operations of the association. Any other contributions of non-cash items must be reviewed and approved by the Board of Directors before acceptance.
LIBAUSA provides opportunities for individuals, businesses, and institutions to voluntarily contribute to causes of their choosing. By engaging the interests and relationships of these individuals and entities, LIBA can help develop a culture of philanthropy where people feel their values can be expressed and contributions effectively used to improve their communities. To honor this trust, LIBAUSA Shall be good stewards and conduct its fundraising according to the highest ethical standards with regard to solicitation, acceptance, recording, reporting and use of funds. LIBAUSA shall adopt clear policies for fundraising activities to ensure responsible use of funds and open transparent communication with contributors and other constituents.
ACCOUNTABILITY TO DONORS
- LIBAUSA shall comply with all federal, state and local laws concerning fundraising practices. This includes registration and annual reporting with the Office of the Minnesota Attorney General and with any state in which the organization is soliciting charitable contributions.
- It is the responsibility of LIBAUSA to conduct its fundraising activities in a manner that upholds the public’s trust in the stewardship of contributed funds.
- It is the responsibility of LIBAUSA to use funds consistent with donor intent and comply with specific conditions placed upon donations.
- It is the responsibility of LIBAUSA to strive for a balance between publicly recognizing charitable contributions and maintaining donor confidentiality when requested.
- It is the responsibility of LIBAUSA to respect donor preferences in the handling of their information and shall implement systems and policies that secure this information, effectively use it to communicate with donors and prevent its use for improper purposes. Nonprofits are allowed to share but LIBAUSA will not trade or sell contact information of any donor without prior permission from the donor.
COMMUNICATION WITH DONORS
- Organizational communications, including fundraising appeals, must include clear, accurate and honest information about the organization, its activities, and when, where and for whom the funds will be used in addition to the tax treatment of a contribution.
- LIBAUSA shall send a written acknowledgment to all donors who make a “quid pro quo” donation (that is, a payment made partly as a contribution and partly for goods and/or services) in excess of $75 and must also send a written acknowledgment to all donors who made contributions of $250 or more in cash or property in the previous calendar year. For donors who have not given more than $250 in the previous calendar year, nonprofits should send an annual statement of giving.
- When developing a fundraising campaign, LIBAUSA shall honor donor preferences regarding how often donors are contacted and how they receive that communication.
- LIBAUSA shall regularly communicate with constituents regarding its activities and shall make such information available through free and paid media.
- LIBAUSA shall plan its communications to tell the story of the association and maintain consistent, mission-focused and timely communication with donors.
- LIBAUSA shall establish a thorough understanding of its key audiences and regularly assess the effectiveness of communication strategies and tools used to reach those audiences.
- LIBAUSA will adjust its strategies over time to best match technologies to its audiences’ communication preferences.