FSRC Event Revenue Policy, v1.2
February 26, 2016 - Board Approved May 18, 2016
The term “event” is used to refer to races and other special events that generate revenue.
- Set policy for the allocation of event revenue funds to charitable causes
- Ensure that one standard policy is applied fairly to all revenue-generating events that FSRC organizes.
- Set guidelines for evaluating charitable programs to receive FSRC events revenues
- Ensure that FSRC receives some small portion of event revenue to cover its administrative costs
- FSRC Charitable giving shall be funded solely from FSRC event revenue, and not member fees, the FSRC race support business, or other sources of FSRC revenue.
- FSRC event net proceeds shall be donated to charity, with the exception of a proposed administrative fee.
- Event Directors shall submit proposals for each instantiation of an event, recommending the charitable cause(s) to which event proceeds will be distributed.
- The event revenue proposals shall be approved by the Executive board.
- Charities benefiting from FSRC events shall meet the following criteria
- If possible, the charity should be local to the Frederick area, or have a local chapter that is equipped to apply funds to Frederick area programs.
- The charity must either be a 501(c)(3) organization or be a program organized and overseen by FSRC members.
- 501(c)(3) organizations should meet basic guidelines of worthiness, including revenue/expense ratios, transparency, etc. See www.guidestar.org for examples of how to evaluate non-profit organizations related to charitable giving.
- If the charitable program is an internal FSRC project, the project shall be evaluated by the FSRC board based on a proposal with elements similar to 501(c)(3) grant proposals (see below).
- Event revenue proposals shall include the following:
- Established 501(c)(3) organization:
- Guidestar rating, and/or similar information related to income/expense ratio, transparency, stability, etc.
- Description of specific programs to be funded, if applicable
- Charitable projects that are designed and executed by FSRC members:
- Annual budget
- Volunteer staffing plan
- Project leads shall submit a brief report annually to the FSRC board including a financial spending report, and assessment of project effectiveness.
- Each event will be assessed an administrative fee tied to event revenues to cover the cost of timing, insurance, and use of FSRC resources. The percentage of event revenues to be assessed as an administrative fee may be adjusted annually as part of FSRC budget planning, but will nominally be set to 10% of gross race revenue.
- The administrative fee shall not preclude use of the statement that “all net proceeds are donated” to the recipient organization as long as the fee remains below 20%.
- For events which fund member-sponsored projects, unallocated funds will remain earmarked for such projects, including add-on funds for existing projects through the year.
- Event directors may request a waiver of the event administrative fee. This waiver is meant to apply to small, low-key fundraising events having a small impact on FSRC budget and volunteer resources.
- This policy is subject to change under the direction of the FSRC Executive Board.