faqs

In order to be exempt from federal taxes, many charitable organizations establish themselves as legally chartered charitable corporations. The guidelines for this process are outlined in section 501(c)(3) of the IRS Code, which is why these are often called 501(c)(3) organizations.

In exchange for tax exemption, this type of organization cannot participate in campaign activities for or against political candidates. They may not attempt to influence legislation, and none of their earnings can benefit a private shareholder or individual. A 501(c)(3) organization can, however, receive tax-deductible contributions to further its mission.

Some charitable organizations have a great idea to benefit the community, but don’t have enough people or funds to become a 501(c)(3) organization, receive charitable contributions, or process cash flow and expenses.

The Lakewood Foundation supports our member organizations by acting as a fiscal sponsor. We provide financial oversight and help to establish tax-exempt status, process charitable contributions, and distribute funding. Our support of the “nuts and bolts” of running a charity offers our members the freedom to focus on their mission.

If your organization is not tax exempt, but is interested in raising funds, The Lakewood Foundation might be the right fit. We process and deposit funding that your organization obtains through grants or donations on your behalf. Contributions would be tax deductible for your donors and non-taxable to your organization.

No, The Lakewood Foundation is not a grant-making organization. We act solely as a fiscal sponsor for our member organizations. We provide financial oversight and help to establish tax-exempt status, process charitable contributions, and distribute funding. We create an agreement tailored to each member organization that outlines how we will help them manage funds.

No, The Lakewood Foundation is not a department of the City of Lakewood. However, we do receive support from finance professionals at the City of Lakewood that help us act as a fiscal sponsor for our member organizations. We also act as a fiscal sponsor for some organizations affiliated with the city, such as H2O (Help to Others).

The Lakewood Foundation is comprised of a volunteer board representing the general community, each of whom holds voting rights to approve new member organizations, board members, bylaw changes, and financial decisions. We are governed by our bylaws and investment policy. A portion of our funds are invested by The Cleveland Foundation and Raymond James & Associates, Inc.

Please review our sponsorship requirements and submit an inquiry.

1. Determine a name for your organization and define its mission.

2. Form a board of directors.

3. Present your program at a Lakewood Foundation meeting.

4. If the board approves your program, establish a bank account with the Foundation.

5. Develop a brand identity for your organization that incorporates the brand of the Foundation.

6. Provide regular financial reports to the Foundation.

7. Notify the Foundation of events and fundraising efforts to receive marketing support.