Final Donations Work Group Proposal - review and comment - share with CAMP

[Chris Mason]

For more info:
www.501c3.org;
Fiscal Sponsorship video: http://www.youtube.com/watch?v=Mx2nLQ4YyDw
(Not an option): Unincorporated Associations:
http://nonprofit.about.com/od/faqsthebasics/f/unincorporationassociation.htm

Fiscal Sponsor Proposal for Occupy Pittsburgh
Presented by the Donations Work Group
11/1/11

There are many people within the Occupy Pittsburgh movement, and those
who support it, who wish to donate funds towards the movement, to
strengthen it by allowing its various working groups to function well
and increase the number of actions, rallies, and marches, increase
outreach to the community, improve the Occupy site at Mellon Green,
increase educational opportunities for Occupy participants and members
of the community, and to guarantee longevity of the movement, whether
or not the camp continues.

Having the ability to accept online and check donations, and receive
cash and non-monetary donations which are tax-deductible to the donors
in a legal and organized way is an absolute necessity for the movement
to continue. In order for Occupy Pittsburgh to receive funds, it
must use another organization’s non-profit status. This is called
fiscal sponsorship. “Fiscal sponsorship is a formal arrangement in
which a 501(c)(3) public charity sponsors a project that may lack
exempt status. This alternative to starting your own nonprofit allows
you to…solicit tax-deductible donations under your sponsor's exempt
status.” (grantspace.org)

Several people participating in the movement have expressed interest
in creating a separate nonprofit arm of the movement, which could
apply for nonprofit status through the IRS, stating its mission is to
fund the Occupy Pittsburgh movement. This nonprofit organization can
be created by Occupy participants and become the fiscal sponsor for
the protest movement. Therefore, no outside organization is needed.
However, it will take time to create the organization and apply for
nonprofit status with the IRS. It takes some months for the IRS to
rule in favor of nonprofit status. In the interim, the Occupy
Pittsburgh movement must receive funding in order to make sure its
specific needs are met without interruption.

Occupy Pittsburgh will have full discretion over how funds are used
and access to frequent reports about its account. An agreement will
be drawn up and endorsed by Occupy Pittsburgh. A fiscal sponsorship
is not an alliance, affiliation, or collaboration. It simply is use
of another organization’s nonprofit status so that funding can be
received, while members of Occupy Pittsburgh work towards becoming
financially independent.

The Thomas Merton Center (TMC), a local nonprofit organization
committed to peace, economic, and social justice issues, and is
willing to meet with Occupy Pittsburgh to discuss setting up a fiscal
sponsorship. They will provide accounting and reporting to the IRS on
behalf of Occupy Pittsburgh, charging a 5% administrative fee per
transaction. This fee has been waived in the past, but no guarantee
that TMC will waive it for Occupy Pittsburgh. TMC has years of
experience in being a fiscal sponsorship and was fiscal sponsor during
the Pittsburgh G20 protests, without issue.
Further, an online account would be set up using WePay.com, so donors
will be able to donate to Occupy Pittsburgh on occupypittsburgh.org,
and will know they are donating to the movement, even though the
movement is utilizing a fiscal sponsor. Taking this route will insure
that Occupy Pittsburgh complies with all Pennsylvania and Federal
statutes involving solicitation and use of charitable donations so
that Occupy Pittsburgh and its participants are not at legal risk.

Approval of this proposal would consist of the following:
1) Donations Work Group will meet with Thomas Merton Center to set up
fiscal sponsorship agreement, and discuss funds withdrawal and setting
up online donation area on occupypittsburgh.org.
2) Donations Work Group will collaborate with all other Work Groups to
establish a system of receipt, storage and distribution of funds
received through the fiscal sponsor and at the camp site. The groups
will also develop internal accounting controls to insure
that all funds are solicited, reported, and used in a legal and
transparent manner.
3) Donations Work Group could continue on as a Work Group once the
sponsorship is set up and a system of tracking and reporting donations
is completed, or it may dissolve once the system is established and
all Work Groups and participants of the Occupy Pittsburgh movement are
comfortable with the systems in place.

To join the Donations Work Group: http://groups.google.com/group/occpghdonations

For more info:
www.501c3.org;
Fiscal Sponsorship video: http://www.youtube.com/watch?v=Mx2nLQ4YyDw
(Not an option): Unincorporated Associations:
http://nonprofit.about.com/od/faqsthebasics/f/unincorporationassociation.htm