Policy Number:  25

Title:  Funds – Solicited And Unsolicited – Sent To The Diocese From Outside Sources

1.  It shall be the policy of The Diocese of South Dakota to have specific procedures in place when funds, either solicited or unsolicited, are sent to this Diocese to benefit a particular mission church, mission area or parish.

2.  The Diocese of South Dakota is a unique Diocese, offering various and numerous opportunities for partnerships and shared ministries. It is apparent that Parishes, Churches, Dioceses, Church Organizations, individuals or other entities from both inside and outside this Diocese have become interested in the ministry that is being accomplished in The Diocese of South Dakota. From time to time these entities will desire to make contributions, financial and otherwise, to the congregations of The Diocese of South Dakota.

3.  It is the policy of the Diocese that all funds, solicited or unsolicited from outside organizations, to include all listed above, be properly accounted for and reported. It is necessary that these contributions be used solely for the purposes for which they are given.

4.  In the case of Parishes, which are independent corporations, the Rector and Vestry, of course, provide the appropriate authorization to solicit funds. However, it is also appropriate that the Diocese be informed of any significant gift, grant or other funds received, so that it may, at the very least, add its thanks to those of the parish. In addition, appropriate accounting of these funds shall be included in the parish annual report, the parochial report, and be available for the annual audit.

5.  In the case of Missions, where the Bishop is the Rector and the Diocese is the corporation, the legal entity is the Diocese and therefore becomes legally responsible for the appropriate practices in solicitation and use. Therefore no solicitation of funds shall be undertaken without the proper authorization of the Bishop. The Diocese must be the recipient of all funds and will provide the appropriate accounting of those funds and to provide for the proper distribution of the funds.

6.  While the Diocese strives to be a place of trust in a world in which distrust has sadly too often become the norm, this can only happen when there is full and appropriate sharing of information. The following procedures are intended to facilitate that trust.  While no policy will prevent deliberate fraudulent behavior, it is hoped the following procedures will prevent misunderstanding and provide protection for all who seek only to serve and be faithful stewards of God's bounty.

SOLICITED FUNDS

7.  Prior to soliciting funds from outside sources, Missions must submit a proposal to the diocesan office for the Bishop's approval. (Note:  This does not apply for solicitation from local entities or individuals for local events or repairs.) This proposal must be signed by the Priest-In-Charge and should include the following:

                   a.  A description and reason for the solicitation.

                   b.  The purpose of the solicitation.

                   c.  The amount of the total project and the amount solicited.

                   d. The solicitation must provide that the grant or gift be made payable to “The Diocese of South Dakota” and sent directly to the diocesan office. If solicited funds are sent directly to the Mission, they must promptly be forwarded to the diocesan office.

UNSOLICITED FUNDS

8.  Unsolicited funds are those which have not been applied for by the Mission, but have been sent to them at the initiative of other entities or individuals. This may also include physical items.

9.  The Mission must acknowledge receipt of such gifts. Copies of checks and accompanying correspondence and acknowledgement must be forwarded to the diocesan office. In the case of significant contributions, the Diocese shall also send an appropriate acknowledgement.

10.  Unsolicited funds must be used in accordance with the giver's stipulations, if there are any. If the Mission does not wish to use them for this purpose, they must be either returned to the giver or written permission must be obtained from the giver to use the gift for another purpose. In all cases, the diocesan office must be notified.

11.  Gifts, solicited or unsolicited, are considered income. This income must be reported on the appropriate lines of the parochial report and must be included in all financial statements. In addition, Missions should attach a separate sheet listing all outside contributions over $200.00.