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REACH
Ministries International,
member of ECFA
RMI is committed to good stewardship of the funds entrusted to us by our donors. We
promise to use your gifts wisely and effectively in Christ's name. To
insure our financial accountability , we are a member of the Evangelical
Council for Financial Accountability. We fully support its purposes and goals,
and proudly display its seal to reflect compliance with its membership standards.
Founded in 1979, ECFA is comprised of more than 800 charitable, religious and
educational organizations which are qualified for tax-exempt nonprofit status.
ECFA's steadfast purpose is to enunciate, maintain and manifest a code of
financial accountability, ethics and reporting which is consistent with
enlightened and responsible Christian faith and practice.
Seven ECFA Standards of Responsible Stewardship
Standard #1 - Doctrinal Statement:
Every member organization shall subscribe to a written statement
of faith clearly affirming its commitment to the evangelical Christian faith
and shall conduct its financial and other operations in a manner which reflects
those generally accepted Biblical truths and practices.
Standard #2 - Board of Directors and Audit Review Committee:
Every member organization shall be governed by a responsible board
of not less than five individuals, a majority of whom shall be other than
employees/staff, and/or those related by blood or marriage, which shall meet at
least semi-annually to establish policy and review its accomplishments. The
board shall appoint a functioning audit review committee, a majority of whom
shall be other than employees/staff and/or those related by blood or marriage,
for the purpose of reviewing the annual audit and reporting its findings to the
board.
Standard #3 - Audited Financial Statements:
Every member organization shall obtain an annual audit performed by an
independent certified public accounting firm in accordance with generally
accepted auditing standards (GAAS) with financial statements prepared in
accordance with generally accepted accounting principles (GAAP).
Standard #4 - Use of Resources:
Every member organization shall exercise management and financial controls
necessary to provide reasonable assurance that all resources are used
(nationally and internationally) to accomplish the exempt purposes for which
they are intended.
Standard #5 - Financial Disclosure:
Every member organization shall provide a copy of its current audited financial
statements upon written request.
Standard #6 - Conflicts of Interest:
Every member organization shall avoid conflicts of interest. Transactions with
related parties may be undertaken only if all of the following are observed: 1)
a material transaction is fully disclosed in the audited financial statements of
the organization; 2) the related party is excluded from the discussion and
approval of such transaction; 3) a competitive bid or comparable valuation
exists; and 4) the organization's board has acted upon and demonstrated that the
transaction is in the best interest of the member organization.
Standard #7 - Fund Raising:
Every member organization shall comply with each of the ECFA Standards for Fund
Raising:
7.1 Truthfulness in Communication: All representations of fact,
description of financial condition of the organization, or narrative about
events must be current, complete and accurate. References to past activities or
events must be appropriately dated. There must be no material omissions or
exaggerations of fact or use of misleading photographs or any other
communication which would tend to create a false impression or misunderstanding.
7.2 Communication and Donor Expectations: Fund raising appeals must not
create unrealistic donor expectations of what a donor's gift will actually
accomplish within the limits of the organization's ministry.
7.3 Communication and Donor Intent: All statements made by the
organization in its fund raising appeals about the use of the gift must be
honored by the organization. The donor's intent is related to both what was
communicated in the appeal and to any donor instructions accompanying the gift.
The organization should be aware that communications made in fund raising
appeals may create a legally binding restriction.
7.4 Projects Unrelated to a Ministry's Primary Purpose: An organization
raising or receiving funds for programs that are not part of its present or
prospective ministry, but are proper in accordance with its exempt purpose, must
either treat them as restricted funds and channel them through an organization
that can carry out the donor's intent, or return the funds to the donor.
7.5 Incentives and Premiums: Organizations making fund raising appeals
which, in exchange for a contribution, offer premiums or incentives (the value
of which is not insubstantial, but which is significant in relation to the
amount of the donation) must advise the donor of the fair market value of the
premium or incentive and that the value is not deductible for tax purposes.
7.6 Reporting: On request, an organization must provide a report,
including financial information, on the project for which it is soliciting
gifts.
7.7 Percentage Compensation for Fund Raisers: Compensation of outside
fund-raising consultants or an organization's own employees based directly or
indirectly on a percentage of charitable contributions raised is not allowed.
7.8 Tax Deductible Gifts for a Named Recipient's Personal
Benefit: Tax
deductible gifts may not be used to pass money or benefits to any named
individual for personal use.
7.9 Conflict of Interest on Royalties: An officer, director, or other
principal of the organization must not receive royalties for any product that is
used for fund raising or promotional purposes by his/her own organization.
7.10 Acknowledgement of Gifts in Kind: Property or gifts in kind received
by an organization should be acknowledged describing the property or gift
accurately without a statement of the gift's market value. It is
the responsibility of the donor to determine the fair market value of the
property for tax purposes. The organization should inform the donor of IRS
reporting requirements for all gifts in excess of $5,000.
7.11 Acting in the Interest of the Donor: An organization must make every
effort to avoid accepting a gift from or entering into a contract with a
prospective donor which would knowingly place a hardship on the donor, or place
the donor's future well-being in jeopardy.
7.12 Financial Advice: The representative of the organization, when
dealing with persons regarding commitments on major estate assets, must seek to
guide and advise donors so they have adequately considered the broad interests
of the family and the various ministries they are currently supporting before
they make a final decision. Donors should be encouraged to use the services of
their attorneys, accountants, or other professional advisors.
For more information contact:
ECFA
P.O. Box 17456
Washington, DC 20041-0456
Telephone: 540-535-0103
Fax: 540-535-0533
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