Event:2016/09/19 Fundraising Call with Stephaney

Fundraising Call w/ Stephaney - 19 Sep 2016

• Jenny describes the complexities of the situation with the donor-lender, namely explaining substantial contributor donations disqualified as public/charitable income after $5K, how this affects our 501c3 status (need 33.3% charitable income over 5 year rolling average), and process for obtaining an advanced ruling from IRS that the $1million donation be classified as an 'unusual grant'
• S: What about setting up a donor-advised funds with the NCCLF? / East Bay Community Foundation
  • Still able to get the tax writeoff
  • 'Services For Donors' or 'Establishing a Fund'
  • However, fund may have to be spent over time. We don't have a lot of time.
• S: What about having the donation go to thru Bay Area Community Land Trust or the Oakland Community Land Trust?
  • J: Again an issue of timeliness, BACLT not accustomed to commercial real estate purchases, should talk with OakCLT
• Downside of a 2nd loan is that it ends up as liability on our balance sheet (rather than assets / equity)
  • Jenny: What if the appraisal says our building asset is actually worth 4.5 million?
    • S: Doesn't change... the asset value recorded on your balance sheet is the book value (what you purchased it at)
• Could take market value difference as a donation ($2m donation), would show up in your equity - but doesn't work in this case as value is already set
• S: Outside of my scope, have helped a lot of nonprofits get real estate and haven't run into these complexities... Get a second opinion:
  • Commission on Civil Rights? Lawyers for the Arts Commission?
  • Lawyers Committee for Civil Rights of the SF Bay Area - lccr.com (Krysal Cole, can intro to her to see if she has any funding sources that could fit with your project).
  • See also Lawyers for the Arts (if they serve Oakland) - they would know a lot about nonprofit law. CAlawyersforthearts.org - they do stuff in Berkeley too
• S: Consider that it could be dangerous to have Jesse spook the donors lawyer with the IRS complexities

Action Items

• Stephaney will reach out to East Bay Community Foundation re: donor-advised funds
• Jenny will look into other recommended sources for a second legal opinion
• Stephaney will intro us to Krystal Cole from the LCCR
• Work on business plan to include fundraising plan [Jenny]
  • https://docs.google.com/document/d/1iVyHJ-FtFy15pdGkFzjVPphy1XAIlTY0B0ca9D7sPxY/edit
• Send contacts re: construction estimates [Stephaney]
• Send some fundraising plan worksheet examples [Stephaney]
• Stephaney will look over business plan and fundraising plan and give feedback
• look into Non-profit learning lab webinars on budgeting and planning, affordable. Join mailing list/listserv
  • YNPNSFBA@googlegroups.com