SayPro Gather and Organize Records.

SayPro Tasks to Be Done for the Period: January

Task 1: Gather and Organize Records

Objective: Collect and organize all documents related to donations, crowdfunding campaigns, sponsorships, and fund allocations to ensure thorough and efficient audit preparation.

Organizing and compiling financial records and related documentation is the first and most important step in preparing for the audit. This process ensures that all relevant documents are accessible, complete, and ready for review by both internal teams and external auditors. By the end of January, the following steps should be followed to achieve this goal:

1.1 Collect Donation Records

Donations play a central role in fundraising campaigns, and it is crucial to collect and organize all records associated with them. These include:

• Donation Receipts:
  • Collect all receipts issued to donors, ensuring they include necessary details such as donor names, donation amounts, and acknowledgment of tax-exempt status.
  • Ensure that donation receipts are sorted by donor name and date for easy access.
  • Verify that receipts issued for donations above $75 include a statement confirming that no goods or services were provided in exchange for the contribution.
• Donation Logs:
  • Gather logs that list all donations, including details such as donor names, dates, amounts, and any special notes (e.g., memorial gifts, recurring donations).
  • Verify that all donation entries are consistent with bank records and receipts issued.
• In-Kind Donations:
  • Organize records of in-kind donations, such as donated goods, services, or products.
  • Ensure that proper valuations and acknowledgment letters for in-kind donations are included and accurately recorded.
• Online and Crowdfunding Donations:
  • Collect documentation for online and crowdfunding donations, including platform records, email confirmations, and donor details.
  • Ensure the donation data is reconciled with the amount deposited into SayPro’s bank accounts from crowdfunding platforms.

Action Steps:

• Review donation logs for completeness.
• Verify all receipts match donor details and amounts.
• Ensure that all crowdfunding and online donation records are properly logged.

1.2 Collect Sponsorship Records

Sponsorships are another crucial source of funding, and it’s essential to track all agreements and related financial transactions. To organize the sponsorship records, follow these steps:

• Sponsorship Agreements:
  • Gather all signed sponsorship contracts that specify sponsorship amounts, payment schedules, and sponsor benefits.
  • Ensure all agreements are up-to-date and reflect the terms agreed upon with sponsors.
• Sponsor Payment Records:
  • Collect records of all payments made by sponsors, including bank deposit confirmations or payment processing platform statements.
  • Verify that the payment amounts match those outlined in the sponsorship agreements.
• Sponsor Acknowledgment Letters:
  • Ensure that acknowledgment letters were sent to sponsors as a formal thank-you for their contribution.
  • Confirm that the letters include specific details of their contributions and benefits provided in return (e.g., logo placement, event mentions).

Action Steps:

• Review sponsorship agreements to ensure they are signed and include all necessary terms.
• Cross-reference sponsor payments with sponsorship agreements to ensure compliance with payment terms.
• Check that all sponsors have been appropriately thanked and acknowledged.

1.3 Collect Crowdfunding Campaign Records

Crowdfunding campaigns require special attention due to the use of online platforms and multiple small donors. To ensure crowdfunding funds are accurately tracked:

• Crowdfunding Platform Records:
  • Gather records from crowdfunding platforms such as GoFundMe, Kickstarter, or others, detailing the amount raised, the platform’s fees, and the disbursement schedule.
  • Collect any emails, receipts, or confirmation messages sent to donors.
• Payment Disbursements:
  • Organize documentation related to the disbursements of funds from crowdfunding platforms to SayPro’s official bank account.
  • Ensure these disbursements match the funds raised and are free from discrepancies.
• Crowdfunding Reports:
  • Compile reports generated by crowdfunding platforms that show the total raised, processing fees, and campaign statistics.
  • Ensure all donor data and transaction records are properly cataloged and consistent with internal donation logs.

Action Steps:

• Confirm that all crowdfunding platform fees and disbursements are clearly documented.
• Ensure any discrepancies between platform reports and bank deposits are investigated and resolved.
• Ensure that crowdfunding donations are listed and logged correctly, particularly if funds were raised via multiple channels.

1.4 Collect Fund Allocation Reports

Fund allocation reports are critical in demonstrating that the raised funds have been used according to the intended purpose. The following steps should be taken:

• Allocation of Funds:
  • Review the breakdown of how the funds raised through donations, crowdfunding campaigns, and sponsorships were allocated across different programs and expenses.
  • Ensure that all expenditures related to fundraising events, marketing costs, and program activities are properly recorded and categorized.
• Expense Documentation:
  • Collect receipts, invoices, and contracts related to fundraising expenses. These may include event costs, online platform fees, venue rentals, and staff costs.
  • Ensure that all expenses align with the fundraising campaign’s objectives and that costs are justified.
• Impact of Fund Use:
  • If applicable, compile reports that describe how the funds raised directly contributed to the organization’s mission. This could include specific programmatic outcomes, scholarships awarded, or services provided.

Action Steps:

• Cross-check fund allocation against campaign goals to ensure that the funds were spent appropriately.
• Review all receipts, invoices, and expense documentation for accuracy.
• Ensure that all allocated funds have been properly documented in reports.

1.5 Organize Tax-Related Documents

Tax compliance is essential for nonprofit organizations, and ensuring that tax-related documents are in order is critical for audit preparation. The following records should be gathered:

• IRS Forms (Form 990):
  • Collect the most recent Form 990 filings, ensuring they accurately reflect all donation, sponsorship, and crowdfunding income, as well as expenses related to fundraising activities.
• Tax Exemptions:
  • Organize proof of SayPro’s tax-exempt status, including state and federal exemption certificates, if applicable.
  • Ensure that SayPro has complied with all state-level fundraising and tax reporting requirements.
• Donor Acknowledgments for Tax Deductions:
  • Verify that acknowledgment letters for donations, particularly for those over $75, meet IRS requirements and include the necessary language for tax deductions.

Action Steps:

• Ensure that the most recent Form 990 is accurate and filed on time.
• Verify that tax exemption documents are up-to-date and organized.
• Confirm that donor acknowledgment letters comply with IRS guidelines for tax-deductible donations.

1.6 Create a Centralized Filing System

All collected records should be organized in a centralized filing system—whether physical or digital—so that they are easy to access during the audit process.

• Physical Records:
  • Ensure that physical records are organized into clearly labeled folders or binders, separated by category (e.g., donations, sponsorships, crowdfunding).
  • Keep original copies of all signed contracts, agreements, and tax documents in a secure location.
• Digital Records:
  • Ensure that all digital records are stored in a secure, organized file structure (e.g., cloud storage, internal drives).
  • Use standardized file naming conventions (e.g., “Donor_Name_Date_of_Contribution”) for easy searching and retrieval.
  • Consider using audit preparation software or spreadsheets to track records and progress in real time.

Action Steps:

• Label and categorize all documents for easy retrieval.
• Create a backup system for digital records to prevent loss or corruption.
• Ensure that sensitive information, such as donor data and contracts, is stored securely.

1.7 Review and Cross-Check Data

Once all records have been gathered and organized, perform a comprehensive review to ensure consistency and accuracy across all documents.

• Data Reconciliation:
  • Cross-check donation logs against bank deposits and sponsorship payments against bank statements to ensure accuracy.
  • Verify that fund allocation reports match the actual expenditures and are in line with the fundraising campaign’s objectives.
• Spot Check for Missing Documents:
  • Perform a spot check of randomly selected records to ensure all required documentation is present and complete.

Action Steps:

• Cross-check records to ensure no discrepancies.
• Verify completeness and accuracy of all documents.
• Address any missing or incomplete documentation promptly.

Conclusion

By following these steps in January, SayPro will have all necessary documents collected and organized for an efficient and thorough audit preparation process. This will ensure that records are not only in compliance with legal requirements but also that they are easily accessible for review by both internal and external parties. Proper organization of documents will save time and prevent any delays during the audit, ensuring that SayPro remains transparent, accountable, and compliant with tax and financial regulations.