 Allied
Arts Council
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ArtsFund Policies & Procedures
I.
Philosophy
of the Arts Fund
II. Organization
III Allocations
IV. Policies
V. Reserves
I.
Philosophy of the Arts Fund
The
Arts Fund is a program of the Allied Arts Council. It
seeks to finance, through an annual cooperative unified
fund drive, operational support for member organizations
which request and merit financial support. Raising and
allocating of funds is its primary purpose. The Arts
Fund believes the principles essential for good
organizational operation and community acceptance are
sound administration, efficient program management, and
fiscal accountability
The
Arts Fund allocation to a member organization is
normally a budget balancing allocation, or the
difference between the budgeted expenditures and other
sources of revenue. In addition, each funded member
organization’s annual financial requirements will be
analyzed and evaluated in light of the total
requirements of all requests and the funds available.
Each
funded member organization must recognize its
responsibility for budget control. As new or expanded
programs are developed, responsibility rests with the
funded member organization to develop supporting revenue
consistent with its program purpose in order to warrant
maximum allocation from the Arts Fund.
A
spirit of cooperation is necessary for the successful
operation of the Arts Fund drive. Under the Council’s
leadership, participation from member organizations in
sharing resources, information, volunteer time and
talent are vital to the campaign. Cooperation in
audience building, program scheduling, and special
events timing is key to the presentation of a unified
arts community to the community at large.
Two
factors combine to assure contributors that their gift
will help make available the best cultural and
educational activities at affordable prices:
1.
The Arts Fund must assure the community that the Arts
Fund goal is a sound figure based upon carefully
studied programs and budgets.
2.
The Arts Fund must assure the funded member
organizations that the maximum community effort will
go into the drive.
II.
Organization
A. Definitions
1. Council:
the Allied Arts Council of St. Joseph, Mo (the elected
board and member organization representatives)
2. Board:
the elected Allied Arts Council board members
3. Executive
Committee: the President, Vice-President,
President-Elect, Secretary, Treasurer plus chair of
the Arts Fund shall be the Executive Committee of the
Council
4. Applicant
Organization: any organization that applies to the
Arts Fund for funds
5. Member
Organization: an organizational member of the
Council
6.
Funded Organization: an arts or humanities
organization of the Council that has met the
eligibility criteria as set forth in the Council
bylaws and has been allocated money
7. Campaign:
the annual Arts Fund solicitation drive
8.
Allocations Committee: the committee which
supervises the annual application process for member
organizations requesting funding
9.
Arts Fund Campaign Cabinet: the committee whose
responsibility is to conduct the annual campaign
B. Arts Fund
Campaign Cabinet
1.
The function of the Arts Fund Campaign Cabinet is to
develop and implement all solicitation activities for
the Arts Fund.
2.
The chair of the Arts Fund shall appoint the chairs of
all necessary campaign divisions and develop a plan
for all divisional appointments and campaign
strategies.
C. The
Campaign Drive:
The
drive shall be a 4 week campaign beginning in March.
D. Allied
Arts Council Executive Committee:
The
Executive Committee shall provide long range planning
functions pertaining to the Arts Fund & appoint
the drive chair(s) by October 1.
E. Executive
Director of the Allied Arts Council
1.
The Executive Director shall provide counsel and
advice to applicant member organizations on all
applications presented to the Council.
2.
The Executive Director shall administer the functions
designated by these policies or by the chair(s) of the
committees identified by this document.
3.
The Executive Director shall coordinate a calendar of
prescheduled fundraising events, membership drives and
season ticket campaigns for the benefit of all member
organizations.
A.
Organization
1.
The Allocations Committee shall consist of twelve to
fifteen members, who represent the interests of both
corporate and individual donors to the Arts Fund.
Members of the Allocations Committee shall serve a
term of three years. There shall be no officer of a
funded member organization on the committee.
2.
The Arts Fund Chair shall participate in the
allocations and goal setting process.
3.
The Allocations Committee shall be appointed by the
Council President with recommendations from past Arts
Fund chair(s) and the Executive Director in such
manner that approximately one-third of the membership
shall be appointed each year. The President shall
appoint the Allocations Committee Chair.
B.
Allocations Policies
The
Allocations Committee shall implement the policies for
the Arts Fund approved by the Council as follows:
1.
Analyze budgets and proposals of organizations
applying for funding by the Arts Fund in accordance
with the established criteria: quality programming,
financial need, community impact, earned income,
management capability, fiscal accountability and
audience development and outreach.
2.
Recommend the levels of allocation for applicant
organizations, and the campaign drive goal, subject to
the approval of the Council.
3.
Review and make recommendations to the Council on all
applications submitted in accordance with established
policies.
4.
Prepare standardized proposal and budget forms to be
used by all applicant organizations.
5.
Establish the annual allocations schedule, which shall
include the following:
a.
Appoint two committee members to a liaison team for
each organization to be made no later than January
31. Each team should attend at least one event and
visit with the staff and board chairs of the
organizations
b.
Make proposal forms available to organizations
seeking funding no later than August 30
c.
Communicate the deadline of October 30 for
submissions of completed funding proposals to the
Council staff
d.
Set hearings for presentation of proposals by
applicant organization
e.
Hold meetings to set recommended allocations and a
proposed campaign goal so that they may be
officially determined by the Council at the December
meeting
6.
Recommend adjustments in allocations following the
Arts Fund campaign
7.
Establish the schedule of funds distribution, based on
the request of the funded organization and on
justified need
C. Criteria
for Funding
l.
Annual allocations are awarded on the basis of quality
programming, financial need, community impact, earned
income, management capability, fiscal accountability,
audience development, outreach and cooperation in the
prior year's fund drive
2.
Allocations are given to organizations that are tax
exempt by the Internal Revenue Service, and registered
with the Secretary of State of Missouri as a not for
profit corporation.
3.
Allocations are given to organizations that are
members in good standing of the Council, with the
following exception: Financial assistance may be given
to a group, not a member of the Council, for a
performance or service that meets the above criteria
and is not available from a member organization.
4.
Four types of allocations may be made:
a.
Continuous support of established organizations
whose programs provide service to the community.
b.
One time only support for special projects which
explore new directions or which provide special
services to the community.
c.
Contingency funding for requests of an emergency
nature
d.
Supplemental support
5.
Contributors to the Arts Fund may designate their
gifts for specific funded organizations. An allocation
will only be modified if the designated contributions
exceed the initial allocation amount. Lists of
contributors designating all or part of their gifts to
particular funded organizations will be provided to
each funded organization.
D. Allocations
Procedures
1.
Funding Request:
a.
Each year the Council will ask all eligible
organizations to file their allocation proposals for
the ensuing year with the Executive Director, no
later than October 30
b.
Each applicant organization will file its request on
the proposal forms prescribed by the Allocations
Committee
2.
Scope of Budget Study
The
entire program of services of an applicant
organization, including a complete budget projection
of revenues and expenditures, shall be included in the
study by the Allocations Committee, even though the
organization may request the Arts Fund support for
only a portion of its entire program.
3.
Proposal Forms
The
applicant organization shall itemize all anticipated
revenues and expenditures on the budget forms. In
addition, the applicant organization should also
supply supporting documentation as may be requested or
as may seem pertinent.
4.
Applicant Organization Approval
The
allocation proposal must be formally approved by the
applicant organization’s governing board prior to
submission to the Arts Fund.
5.
Supplemental Allocations
At
any time during the year that a funded organization
finds its approved annual budget inadequate,
supplemental allocation requests may be made. Such
requests shall be in writing, approved by the
governing board of the funded organization and sent to
the Allocations Committee for consideration. It should
be understood that only in unusual circumstances will
supplemental funding be available.
6.
Project and Contingency Funding
Requests
for funding of one-time only projects which are
innovative or which provide special services to the
community and unusual requests categorized as
contingency fund, must follow the same basic
procedures as outlined above.
7.
Financial Reports
Each
funded organization shall provide the Arts Fund with
an annual audit report of their books or a year-end
financial statement. Such audit report or statement
must be prepared by a certified public accountant or
an acceptable fiscal agent, showing all revenues,
expenditures and other funds in reasonable detail. The
audit report must be submitted as part of the next
Allocation Proposal or by October 1. In addition the
funded organization shall provide quarterly financial
statements including balance sheet and statement of
revenues and expenditures to the Arts Fund. Failure to
provide the audit report and quarterly financial
statements may result in the suspension of current
funds by action of the Elected Board.
8.
Appeals
Any
decision regarding allocations, organizational fund
raising or special requests may be appealed to the
Council by any applicant or funded organization. The
appeal shall be in writing from the governing board of
the organization making the appeal. A response to the
appeal from the Council will be made to the
organization within forty-five (45) days of receipt of
the formal appeal. It is the expectation of all funded
organizations and their membership that any appeal
be addressed by the above-stated mechanism. Thus the
appeals will be handled internally within the Arts
Council organization where such appeals should
reside.
9.
Amendments of these Policies and Procedures
Amendments
to these policies and procedures may be made by a
majority vote of the Council after thirty (30) days
written notice of the proposed amendment shall have
been given to the Council and each funded
organization.
10.
Loans and Early Allocations Payments
A
request for a payment from the Arts Fund to a funded
organization shall be treated in the same manner
whether it is a payment of an allocation before its
scheduled time or a cash flow loan. Interest shall be
charged on a daily basis at an interest rate which is
commensurate with current market rates on Arts Fund
investments. A minimum processing charge of $10.00
shall be added to the interest due. Authority to grant
such requests shall belong to the President or
Treasurer of the Council and one other member of the
Finance Committee. Such action shall be ratified by
the Council at its next regular meeting. While there
shall be no limit to the number of times an
organization may apply for such payment, such payment
shall be granted only if it is fiscally prudent based
on current Arts Fund balances. It is imperative for
the health of the Arts Fund that the needs of all
organizations be considered concerning any requests
for early payment or loan.
11.
Withholding Payment
If
any Arts Fund organization is more than 60 days in
arrears in submitting their most recent quarterly
statement, including balance sheet and statement of
revenues and expenditures, funding will be suspended
until receipt of the statement. Council staff will
call the organization when the statement is 30 days
past due. If the statements have not arrived by the
next Finance Committee meeting, action will be taken
to suspend the next allocation check. Exceptions may
be granted by the Finance Committee upon written
request of the funded organization. All suspensions or
exceptions shall be reported to the Board of Directors
at their next meeting.
The
following policies apply to all member organizations of
the Council, their governing boards, professional or
volunteer staff, committees, guilds, affiliated
organizations or volunteers acting on behalf of or for
such member organizations.
Written
requests for interpretation of these policies may be
submitted to the Board of Directors by any member
organization. The decision of the Board of Directors
shall be final.
A. Direct
Solicitation Policy
Member
organizations of the Council, whether they receive
allocations or not, may not directly solicit
companies, company foundations, or trusts who
contribute to the Arts Fund without prior approval of
the Council. A list of business and corporate donors
will be compiled by the Council and sent to each
member organization following the drive each year.
Direct solicitation of corporate contributors to the
Arts Fund by a member organization, without prior
approval of the Council, may jeopardize future funding
to that organization.
B. Autonomy
The
essential autonomy of each member organization, and
the responsibility of its governing board for details
of management, both program and financial, is basic to
the relationship between the Council and each funded
organization.
C. General Policy
(The “Blackout Period”)
Member
organizations including their guilds or auxiliaries
shall be restricted from all fund raising activities
during the Arts Fund Drive. Any exceptions to this
policy are set forth in the sections that follow.
D. Applications
for Member Organization Fund Raising
The
application for fund raising projects shall be made in
writing by the member organization as part of the
allocation proposal or by October of the year
preceding the project. Member agencies that are not
funded should file by the October deadline. Such
application shall include a summary of the proposed
fund raising event, the proposed time, the purpose of
the funds and other such information as the
Allocations Committee may require.
E. Special
Projects and Social Fund Raising Events
Member
organizations may engage in special projects and
social fund raising events. Any program seeking broad
community participation which intends to produce a
charitable contribution shall be considered a fund
raising event. Continuing projects such as annual
balls, garage sales, show houses or benefit
performances fall into this category.
The
proposed events and dates shall be filed as part of
the allocations proposal or by October of the previous
year. In the event that an event cannot be filed at
that time, approval of the Council is required prior
to final scheduling. This will generally require at
least 30 days notice.
In-kind
solicitations to aid in the production of such events
shall be part of the allocation proposal. For example:
such solicitation might be audio-visual or lighting
equipment, tables, chairs, vehicles for transporting
property, door prizes or raffle items.
F. New Activities
Any
new or expanded programs which might require future
funding must be made known to the Allocations
Committee prior to implementation.
G. Membership
Drives
All
Member Organizations may conduct annual membership or
development drives between April 30 and December 31
each year.
Notice
of membership or development drives shall be filed by
Funded Organizations and approved as part of the
allocation proposal or by October 15th of
the previous year.
H. Ticket Sales
All
member organizations may sell admission tickets to all
regular or special events produced or sponsored by
such organization.
Dates
for notice of season subscription drives shall be
filed and approved as part of the allocation proposal
or by October of the previous year by all member
organizations.
Season
ticket campaigns shall be permissible during the Art
Fund drive, however, any phase of a ticket campaign
aimed at corporate sales should be conducted before or
delayed until after the Arts Fund campaign has been
completed.
I.
Registration Fees
Member
organizations may charge reasonable fees for
participation in classes, workshops, seminars or
attendance at lectures by such organizations.
J. Printed Program
Advertising
Member
organizations may solicit printed program advertising
from businesses and corporations, except during the
dates of the annual Arts Fund drive.
Replacement
of single ads in the current season program are
allowable at any time.
K. Program or
Exhibit Sponsorship
Corporate
sponsorship of programs or exhibits is an opportunity
to expand funding for the arts. Such funds usually
come from a company’s marketing budget, as the arts
agency provides a specific audience of value to the
sponsor. Member organizations may apply to the Council
for permission to solicit corporate sponsorship of
program events or exhibits. The Executive Director may
give preliminary approval to the member organization
to make initial contact with a proposed sponsor.
L. Foundation or
Government Solicitation
Member
organizations are encouraged to apply for grants from
national, regional, state agencies or councils,
including (but not limited to), National Endowment for
the Arts, Department of Education, Mid-America Arts
Alliance, the Missouri Arts Council etc. Member
organizations may apply to the Council for permission
to solicit private funding mechanisms.
M. Unsolicited
Gifts or Bequests
Member
organizations may accept unsolicited gifts or bequests
of cash, tangible or intangible, real or personal
property.
The
governing boards of such recipient member
organizations may accept such gifts or bequests with
or without restriction.
If
such gifts are unrestricted by the donors, the
governing boards of the member organizations have the
sole discretion to determine the use of such gifts or
bequests.
N. Endowment or
Capital Fund Drive
Member
organizations may provide for endowment or capital
fund drives appropriate for their present and future
needs. Organizations shall advise the Executive
Committee of the time frame and the nature of their
proposed drives. These drives are subject to the same
scheduling and notification procedures to be followed
for all other fund raising. On-going endowment or
capital fund enrichment programs are subject to the
same approval.
O. Recognition
All
funded organizations are required to give the Arts
Fund recognition for support in event programs and
advertising. Type size should be similar in size to
that used for the Missouri Arts Council. The credit
line should read: “Financial assistance for this
program has been provided by the Arts Fund of the
Allied Arts Council and the Missouri Arts Council, a
state agency.” If the Arts Fund provides the highest
level of dollar support, the Allied Arts Council logo
should be positioned first.
The
Council encourages the development and maintenance of
operating cash reserves and endowments for its members
organizations. Prudent management and organizational
security call for an operating cash reserve on which
to call in the event of cash flow difficulties or
financial emergencies. Authorities in non-profit
management specify that cash reserves should equal at
minimum 60 days and at the maximum 120 days of
operational expenses. Endowments built through planned
or deferred income, rather than capital fund drives,
are considered earned income to the organization.
In
the question of the use of cash reserves and
endowments, the Council reaffirms the autonomy of the
independent board of directors of each member
organization. Each organization by virtue of that
autonomy has the right to develop policies for the
uses of these funds. By that right, there can be no
limitation on the size of an endowment. Cash reserves
beyond necessary levels specified above may be used
for the creation of an endowment.
The
Arts Fund Allocations Committee shall view cash
reserves in light of this policy. Whenever possible,
allocations should be granted at a level that does not
endanger a cash reserve. However, each organization is
expected to execute its annual program within the
constraints of its budget.
Because
of its charge to allocate funds collected from the
community for the Arts Fund organizations, the
Allocations Committee may consider endowment fund
investment income as available income for use by an
organization in its annual operations. The Allocations
Committee should respect the maintenance of the
principal of an endowment and will take into
consideration the organizations’ objectives for
building endowment funds through the reinvestment of
any earnings. In situations of extreme program
expansion where the requested Arts Fund allocation has
risen beyond the Fund’s ability to award that
allocation, the Allocations Committee has the right to
recommend that the organization consider other
available sources, including endowments, for the
balance of dollars necessary for the expansion.
Approved
12/17/98 by the Full Council
Revised 2/21/08 by the Full
Council Revised 6/18/09 by the
Allied Arts Council Board of Director |
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