Opening an American Friends Fund at KBFUS, a Brief Overview
1. Opening your American friends fund at KBFUS
Opening an American friends fund at KBFUS is simple and straightforward. The first step to open a fund is to complete and submit our online application form, providing us with basic information about your organization’s mission, administration, programs, funding sources, governance and leadership.
Based on this information, KBFUS will determine if your organization is the equivalent of a charity, within the meaning of Section 501(c)(3) of the United States Internal Revenue Code, and if your organization’s activities are consistent with KBFUS guidelines and charitable purposes.
Once your application has been approved, KBFUS will invite you to enter into an agreement (available upon request) establishing your American friends fund at KBFUS.
2. Soliciting contributions
After your American friends fund is set up, you can inform your donors and contacts based in the United States that they can support your activities through a contribution to your American friends fund at KBFUS. Because KBFUS is a 501(c)(3) public charity, donors may claim the maximum tax benefits allowed by U.S. tax law for their contributions.
KBFUS can accept contributions in cash (by check, money order, or wire transfer) or in appreciated property, such as stocks, bonds, mutual funds or real estate. KBFUS can also accept bequests for inclusion in a fund. KBFUS will provide you with a dedicated, customizable webpage to receive online donations by credit card. Please note that through KBFUS ART, we can also accept donations of artworks, collections, libraries or archives.
KBFUS will send each donor an acknowledgement of their donation, and donors will be advised to keep this acknowledgement as a receipt for gift substantiation purposes. The acknowledgement will confirm that no goods or services were provided in return for the contribution (except in those instances where such goods or services are provided).
3. Requesting a grant distribution
Please note that there is a $5,000 minimum for grant distributions from American friends funds and that the administration process described below usually takes between two and four weeks to complete.
a. Grant recommendation:
You can request a grant distribution from your American friends fund at any time. Requests should be submitted through our online application system, and should specify the requested grant amount and a description and budget for the specific project or program to be funded with the grant moneys.
b. Review of your grant request and signing of grant agreement:
In order for donors to obtain the maximum tax benefits allowed by U.S. tax law for their contribution, KBFUS must retain exclusive control as to the use of all contributions. Once your grant request is approved by our Board of Directors, we will send you a grant agreement, specifying the purpose for which the funds will be used and requesting a brief report after a one-year period.
c. Transfer of the grant amount:
Upon receipt of the signed agreement, KBFUS proceeds with the payment via wire transfer.
4. Monthly statements
Each month, we will send you a statement for your American friends fund, providing you with an updated report on contributions received, grant distributions made, and available balance. The statement will include detailed contact information for each donor, except for contributions received with the explicit request from the donor that their gift remain anonymous. You can also obtain an interim statement at any time, upon simple request.
5. Set-up and management fees
There is a one-time set-up fee of $1,500 to open an American friends fund at KBFUS.
To help us cover our operational expenses, KBFUS charges a management fee on the cumulative total of contributions deposited in a fund within a calendar year, as follows:
An additional 3% credit card processing fee applies to all contributions received by credit card.
KBFUS does not charge an annual maintenance fee, nor is there a minimum balance requirement.
Return to American Friends Funds
Any further questions? Please contact us at [email protected] or (212) 713-7660.
|An American friends fund at KBFUS – A cost-effective solution to raise funds in the U.S.|
|An American friends fund at KBFUS – One-page presentation|