Policy For Collecting Donations

Submission Date:

Monday, July 24, 2023

Question:

I am interested in developing a policy to outline who/how the library may collect donations on behalf of other organizations. We have always had a Lion's Club eyeglass donation box in the library. I inherited this procedure but I cannot find any policy that specifies the parameters of such an agreement. Does the organization we would collect for have to be a 501C3? I can't find guidance on what is acceptable, appropriate and most of all legal. Does the organization have to be one that reports finances to the state? We are a special legislative district library. I found some information from the state (below) but my legalese isn't what I'd like it to be. Thanks for any information you can provide. (PS this is prompted by someone telling a local group that we would let them collect old sneakers for their cause...Eeeewww!)

SECTION 174-B
Solicitation
Executive (EXC) CHAPTER 18, ARTICLE 7-A

Answer:

[NOTE: For exciting recent commentary and a model policy about fund-raising along with or on behalf of third parties (like Friends), check out this RAQ, addressing libraries assisting Friends groups with fund-raising activities.  The following response is limited to the very narrow issue of collecting donations on behalf of other (non-Friend) organization, as described in the question.]

You see them everywhere (although perhaps not as much as you used to): donation boxes for charities at the front desks of various institutions.  They can pertain to just about any worthy cause:

• Medical research
• A local preservation movement
• A fund-raiser for a specific person in need
• Trees, bees, flowers, pollinators
• Clothing

In the question, it's a Lion's Club eyeglass donation box, and, apparently, a cause that uses old sneakers.[1]

Whether it's money or tangible goods, a public library is (in the minds of charitable organizers everywhere) a great place to put out a collecting box and ask for donations.

The issue is, as pointed out by the member, that it can be both inconvenient[2], and pose risk and legal compliance challenges.

Although the legal compliance challenges the member points out are primarily fiscal (relating to state and federal conditions and restrictions for charitable fund-raising), they are also related to access and fairness--since agreeing to host a donation box for one entity means the library has to have a fair and equally applied standard before rejecting the donation box of another.[3]

These compliance challenges have their roots in the following legal factors:

• As pointed out by the member, state laws pertaining to solicitation of donations[4];
• Fiscal liability when resources intended for a third party are collected and stored on site at a library;
• Random risks potentially created by accepting donations of money and tangible goods (theft, contamination, litter, fire).

A library facing this issue has three options:

Option 1.  As a matter of policy, to not host donation boxes for third parties;

Option 2.  As a matter of policy, to use an application process and set criteria for hosting a limited number of solicitations (or perhaps just one) at any given time;

Option 3.  As a matter of policy, to use an application process and set criteria for hosting an unlimited number of solicitations at any given time.

If a Library uses "Option 1", they have very little to worry about--no financial liability, no fraud to stop, and no risk of inconvenient donations cluttering up the library.  Sure, it's sort of the "Grumpy"[5] option, but it also means resources can be focused on the main mission of the library (which is 100% A-OK).

If a Library uses "Option 2" or "Option 3", as the member points out, there needs to be a mechanism to filter out potentially fraudulent solicitations (solicitation for the non-existent "Human Fund"[6]), and to ensure the library can impose reasonable limits on how long the donation box or solicitation is present.  The best way to do this--although it will cull out certain ad hoc efforts, like money to go directly to a family impacted by a fire[7]--is to ensure the solicitation will only be by a charity registered in NY.[8]

Please find template policies addressing these options, below:

Option 1 ("Grumpy")

NO DONATION BOXES; [NO] DONATION SOLICITATIONS

1.  Donation Boxes

The NAME Library respects all charitable endeavors, including the ongoing or special solicitation of donations in support of worthy causes.  However, since the Library does not have the capacity to monitor on-site donation boxes, we cannot allow them on Library premises. 

2. Donation Solicitations

Solicitations and notices about fund-raisers can be posted on our community notice board at [location]. OR We do not currently have a location for the public to post solicitations and notices about fund-raisers.

Option 2 ("Very Limited")

DONATION BOXES; [NO] DONATION SOLICITATIONS

1. Donation Boxes

The NAME Library respects all charitable endeavors, including the ongoing or special solicitation of donations in support of worthy causes.  However, since the Library has only limited capacity to monitor on-site donation boxes, we can only allow limited amounts on Library premises.

Charities registered with the NY Attorney General's Charities Bureau may apply to have a solicitation box at the library for up to 2 months per year; selection will be made in order of application.

To apply, please send a letter letting us know:

1. The name of the charity and New York State Charities Bureau Registration #

2. The purpose of the donation

3. What is being solicited (money or donated goods)

4. The size of your donation box (cannot exceed AMOUNT)

5. Who from your organization will be at the library no less then 1 day per week to empty the donation box.

6. A complete list of board members and contact information for your charitable organization.

Failure to empty the donation box on a weekly basis will result in permission being revoked. The Library is not responsible for loss or damage to donated items.

Electronics and any items containing batteries, food, and items that may interfere with the routine environment of the library may not be donated.

Use of this is limited to # months per year, per organization.

The library may cease offering this courtesy without notice.

2. Donation Solicitations

Solicitations and notices about fund-raisers can be posted on our community notice board at [location]. OR We do not currently have a location for the public to post solicitations and notices about fund-raisers.

Option 3 ("Many at Once")

DONATION BOXES; DONATION SOLICITATIONS

1. Donation Boxes

The NAME Library is able to offer space for soliciting donation to local charities registered with the New York State Attorney General's Charities Bureau. To apply, please send a letter letting using know:

1. The name of the charity and New York State Charities Bureau Registration #

2. The purpose of the donation

3. What is being solicited (money or donated goods)

4. The side of your donation box (cannot exceed AMOUNT)

5. Who from your organization will be at the library no less then 1 day per week to empty the donation box.

6. A complete list of board members and contact information for your charitable organization.

Failure to empty the donation box on a weekly basis will result in permission being revoked. The Library is not responsible for loss or damage to donated items.

Electronics and any items containing batteries, food, and items that may interfere with the routine environment of the library may not be donated.

Use of this courtesy is limited to # months per year, per organization. The library may cease offering this courtesy without notice.

2. Donation Solicitations

Solicitations and notices about fund-raisers can be posted on our community notice board at [location]. OR We do not currently have a location for the public to post solicitations and notices about fund-raisers.

As with any model or template policy, the above language should be reviewed by your local attorney and contrasted with your other fiscal and operational policies to ensure it is consistent and reflects the priorities and practices of your unique institution.

I wish you well with helping charities accept donations, of any type or size!

Tag:

Donations, Policy, Templates