Fundraising for PALS 4 Paws Financing for Non-profit Organization

PALS 4 paws is a non-profit organization interested in safeguarding pets in the U.S.A. To protect them from abuse, neglect, abandonment, and euthanasia. The goal of PALS 4 Paws is to decrease the number of animals that are going into animal shelters and increase the number of local adoptions to ensure better lives for pets. As a non-profit, PALS 4 paws will manage the rescue of pets that fall victim to issues of mistreat, tragedy or other forms of animal suffering. One the other hand, it will provide pet lovers with low cost pets by facilitating the adoption process through owner-to-adopter communication. This paper discusses the fundraising aspect of Pals 4 Paws as well as details of the organization's financial policies.

Fundraising plan

Strengths

Based on the assessment of the organization, three key areas of strength are identified. The first is the dedication of the organization's executive director and staff to the organization's mission. The second key strength is the extensive connections that the organization's executive director has that enable them to execute the organization's mission through opportunities for adoption, corporate partnership, and sponsorship. These connections are especially in animal rights circles where the executive director is well-known and connected. The last strength is the growing network of the organization. More people are believing in the importance of safeguarding animal rights and providing them with homes and there is a growing list of followers of the organization.

Fundraising objectives

The organization has the following objectives of its fundraising activities. The first objective is to increase and improve the reach of the activities of Pals 4 Paws. The organization is seeking opportunities to expand its programs into more localities and regions, thus increasing program reach. To do this, it is necessary to have funds to support the organization through education of locals, creation, and dissemination of information, and community building. The second objective of fundraising is for the organization to launch a community program that enables the organization to reach more pets and adopters. The organization will need to develop a strong team thus the need for financial support to help with salaries and other related expenses such as community education activities. The last objective is for the organization to build its stream of revenue by charging, though subsidized fees, for adoption services. The organization seeks financial support through sponsorship, grants, individual donations, and government funding to be able to diversify its revenue streams to focus on the available opportunities to raise funds for the organization.

Fundraising goals

The primary fundraising goal is to raise $100,000 through fundraising to support the organization's mission and achievement of the earlier stated objectives. The secondary fundraising goal is to build the capacity of the organization to reach more pets and adopters and at the same time create a sustainable revenue stream to support future activities of the organization.

The organization seeks to develop a donor pipeline to support the organization through recurrent donations through membership schemes or an annual fund to be established. The organization also seeks to identify and expand its funding programs to attract corporate and non-profit sponsors to fund the organization.

Funding strategies

Pals 4 Paws plans to develop and adopt this fundraising plan in tandem with the organization's strategic plan. The organization will actively involve the board of directors in all fundraising activities to achieve maximum benefit. The organization will also address the internal view of philanthropy to source donations from board members and staff members as well. The organization will create a secure dedicated team to handle fundraising activities. Through the organization's individual giving program, the organization seeks to get as many individuals as possible to contribute in order to negotiate with corporates to match or give above the contributions of individuals. To generate unrestricted revenue, the organization seeks to develop an annual fund. Lastly, the organization will utilize the process of identification of prospects to achieve success in its fundraising activities.

Fundraising timeline

Pals 4 Paws is eager to engage in these fundraising activities. However, the organization is constrained in human resources. The plan is for the organization to raise the funds over the next 6 months. This allows Pals 4 Paws to identify the fundraising budget, meet its staffing needs, and prepare a database of donors to engage. Individual giving will start immediately with grants and corporate/non-profit sponsorship expected to start within two months once the required organizational capacity is built.

Financial policies

Operation authority and financial transactions

For Pals 4 Paws, the treasurer will be authorizer of all financial transactions. The treasurer will review all invoices for accuracy and conformity to the budget to ensure all conditions are met before authorizing the payment. The treasurer is also in charge of keeping records of all financial transactions of the organization. All expenses must be attached to an invoice and purchase order or petty cash requisition to ensure funds are...

The treasurer will then pass the authorized payment for preparation of the check and signing.
The organization prohibits practices such as paying invoices that are not approved or there is no approved budget, providing blank checks in advance, and checks made out to cash or to the bearer of the check.

Projection budget

A proper budget is key for a nonprofit to ensure expenses are accounted and planned for. Pals 4 Paws' budget for the next financial year is as below.

Quarter 1

Quarter 2

Quarter 3

Quarter 4

Total

Revenue

Grants/donations

45,000

55,000

25,000

35,000

160,000

Contracts

5,000

10,000

TOTAL

45,000

55,000

30,000

45,000

175,000

Expenditure

Wages

10,000

12,000

15,000

18,000

45,000

Audit

2,000

2,000

2,000

2,000

8,000

Others

8,000

8,000

8,000

8,000

32,000

TOTAL

20,000

22,000

25,000

28,000

85,000

Surplus

25,000

32,000

5,000

17,000

90,000

Donation acceptance

Pals 4 Paws by virtue of accepting donations is at the risk of receiving stolen or otherwise 'unclean' money. The organization is also at the risk of receiving funds with restrictions of use placed by the donor. The policy of Pals 4 Paws is to receive funds through their bank account or other cashless payment methods such as debit or credit cards. Where the donor uses a debit or credit card, they will be required to provide confirmation that they are the owner of the card to prevent credit card fraud.

Checks received in the office of Pals 4 Paws will be photocopied for records and banked. All checks will be endorsed with a stamp to ensure the check is only deposited in the organization's bank account. The treasurer will then write the organization's bank details (bank name and account number) on the rear side of the check before depositing the check. The organization will not accept cash at its offices since cash can be stolen. Any person willing to donate in cash will be asked to bank the money in the organization's bank account stating their name, address, and purpose of the payment.

All donations above $50 will be acknowledged. The acknowledgement will be a letter or card confirming receipt of the cash and thanking the donor for their generosity. The amount for the acknowledgement, including postage, should not exceed $8. The acknowledgement will contain the donation amount, when it was received, the purpose of the donation, and a statement that the organization does or will not provide any goods or services in exchange for the donation amount. It will also provide the donor with a contact number in case the donation amount or any other detail is misstated.

Asset protection

The organization's assets are under the protection of the organization's board of directors. All assets will be clearly labeled with asset tags for the organization and will be documented in the organization's financial records. These financial records will contain the value of the asset, depreciation amount, and other details relating to the asset. The organization's bank accounts will also be listed in the asset list and all balances will be updated maximum within two (2) working days to ensure they are kept up-to-date.

Internal controls

To ensure internal control and transparency, the organization will separate fiscal or financial roles such as custody, authorization, execution, and monitoring. Each role will have a person attached to ensure the person writing the checks is different from the person signing the checks and in turn different from the person approving the annual budget. Additionally, the board will regularly review the risks associated with financial operations at the organization to enact standard policies and procedures that will minimize these risks.

501c (3) taxation rule

Introduction

501(c)(3) means that a nonprofit organization is tax exempt. Thie organization is organized and operated without tax. Meaning the organization does not pay tax on its activities such as revenue from donations. However, to get this status, the organization must not be organized or operate for the benefit of individuals and that the net earnings of the organization may not benefit any individual (Mutz & Murray, 2012).

How does it apply to P4P?

For P4P, being a tax-exempt nonprofit means the organization needs to maintain proper financial records at all times. This ensures that the organization is aware of their financial status and that the internal checks are working to ensure the organization's funds are not used for benefit of individuals. The Internal Revenue Service (IRS) requires organizational documents and bylaws to be submitted when applying for tax-exempt status. P4P has submitted these documents and needs to abide by them at all times.

Since the organization's directors are not full time employees…