FREQUENTLY ASKED QUESTIONS
1. What is a 501(c)(3)?
A legally chartered corporation, often described as a charitable organization that is organized and operated exclusively for purposes set forth in section 501(c)(3) of the IRS Code. These organizations may not participate in campaign activities for or against political candidates, may not attempt to influence legislation, and none of their earnings can accrue to a private shareholder or individual. Meeting these standards allows the organizations to obtain federal tax-exempt status, and to receive tax-deductible contributions.
2. What is a Fiscal Agent, and what do they do?
An organization or a legal entity managing the funds of an unrelated party/non-profit organization.
3. Should The Lakewood Foundation act as the Fiscal Agent for our organization?
An organization may need a fiscal agent if it is not tax exempt, but is interested in soliciting funds for a project that supports the well-being of the community. Under the agreement between the fiscal agent and the organization, the organization could obtain funding via grants or donations. Funds received by the fiscal agent are tax deductible for the donor and non-taxable to the recipient organization. The fiscal agent will then coordinate the fiscal duties on their behalf.
4. Does the Lakewood Foundation award donations or contributions?
No, the Lakewood Foundation does not give contributions or donations. The Lakewood Foundation acts solely as the fiscal agent and disburses funds per the agreement between itself as agent, and the organization it represents.
5. Is the Lakewood Foundation a department of the City of Lakewood?
No, The Lakewood Foundation is not a department of the City of Lakewood.
6. What are the activities of the Lakewood Foundation?
A. The Lakewood Foundation meets (9) times per year to evaluate Fiscal Agent requests, to monitor financials and to receive program updates.
B. The Lakewood Foundation acts as a Fiscal Agent for Lakewood Community organizations.
C. The Lakewood Foundation acts as the Fiscal Agent for certain city programs, grants and donations only.
7. How does someone apply to the Lakewood Foundation for fiscal agent services?
If your organization would like to pursue The Lakewood Foundation’s acting as a fiscal agent we require:
A. The organization must make a short presentation to the Board of Trustees at their meeting. This presentation will provide the Board with information on their intent, the structure of the organization, a timeline (if pertinent) any other useful information.
B. The organization must provide directory of its officers and/or directors. The Directory shall include the name, addresses and telephone number of the person to whom The Lakewood Foundation would send all official communications.
C. The name of the person who has financial authority for the organization.