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Financial Controls Policy: Difference between revisions

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__TOC__
== Summary ==
== Summary ==
We follow Raft’s financial rules. This page shows how we comply.
We follow Raft’s financial rules. This page shows how we comply.
VONet is part of Raft and not a separate entity. :contentReference[oaicite:0]{index=0}
VONet is a program of Raft, not a separate entity.


== Restricted Fund ==
== Restricted Fund ==
All gifts go into a Raft Restricted Fund for VONet. :contentReference[oaicite:1]{index=1}
* All gifts go to a Raft Restricted Fund for VONet.
We cannot spend more than the fund balance. :contentReference[oaicite:2]{index=2}
* We never spend more than the fund balance.
Raft holds variance power to use funds to meet our purpose. :contentReference[oaicite:3]{index=3}
* Raft can redirect funds to meet the project purpose if needed.
The fund is Raft’s asset for accounting and tax reporting. :contentReference[oaicite:4]{index=4}
* For accounting and tax, the fund is Raft’s asset.


== Disbursements ==
== Disbursements ==
Upload receipts/invoices as Raft directs. Staff review for purpose and terms. :contentReference[oaicite:5]{index=5}
# Submit receipts or invoices as Raft directs.
After approval, Raft pays or reimburses by the chosen method. :contentReference[oaicite:6]{index=6}
# Raft staff review for project purpose and terms.
Foreign expenses need Raft’s prior written approval. No exceptions. :contentReference[oaicite:7]{index=7}
# After approval, Raft pays or reimburses.
# Get Raft’s **written** OK before any foreign expense.


== Where money sits ==
== Where money sits ==
Do not hold project funds outside Raft accounts. Ever. :contentReference[oaicite:8]{index=8}
* Keep all project money in Raft accounts.
If money lands elsewhere, transfer it to Raft at once. :contentReference[oaicite:9]{index=9}
* If money lands elsewhere, move it to Raft at once.


== Contracts and purchasing ==
== Contracts and purchasing ==
Raft handles leases, contracts, AP/AR, and disbursements in Raft’s name. :contentReference[oaicite:10]{index=10}
* Raft signs leases, contracts, and MOUs.
Property obtained for the project is Raft’s, held for VONet’s purpose. :contentReference[oaicite:11]{index=11}
* AP/AR and disbursements run in Raft’s name.
* Items bought for the project are Raft property used for VONet.


== Administrative allocations and costs ==
== Administrative allocations and costs ==
Raft deducts an admin allocation from deposits: 10% standard;
* Admin allocation on deposits:
9.25% on gifts ≥ $250,000 and < $1,000,000; 8.5% on gifts ≥ $1,000,000. :contentReference[oaicite:12]{index=12}
** 10% standard.
Project pays Raft-carried insurance tied to our work. :contentReference[oaicite:13]{index=13}
** 9.25% on gifts ≥ $250,000 and < $1,000,000.
Project pays card processing fees for our donations. :contentReference[oaicite:14]{index=14}
** 8.5% on gifts ≥ $1,000,000.
Project pays employment and benefits costs for project staff. :contentReference[oaicite:15]{index=15}
* Project pays: insurance tied to our work.
Project may pay project-specific legal fees (Raft decides, discuss first). :contentReference[oaicite:16]{index=16}
* Project pays: card processing and merchant fees.
Interest earned stays with Raft’s general fund. :contentReference[oaicite:17]{index=17}
* Project pays: employment and benefits costs for project staff.
* Project may pay: project-specific legal (coordinate with Raft first).
* Raft keeps any interest earned.


== 501(c)(3) compliance ==
== 501(c)(3) compliance ==
All spending must serve the charitable purpose. :contentReference[oaicite:18]{index=18}
* All spending must serve our charitable purpose.
Lobbying is limited, and campaign activity is banned. :contentReference[oaicite:19]{index=19}
* Lobbying is limited. Campaign activity is banned.
Donors do not control the fund (not donor-advised). :contentReference[oaicite:20]{index=20}
* Donors cannot control use of funds.


== VONet approval steps (local) ==
== VONet approval steps (local) ==
These steps come **before** Raft review.
These checks come **before** Raft review.
* Under $500: Project Lead approves in writing.
* Under $500: Project Lead approves in writing.
* $500–$5,000: Project Lead + one committee member approve.
* $500–$5,000: Project Lead + one committee member approve.
* Over $5,000 or any contract: Project Lead + committee approve, then send to Raft.
* Over $5,000 or any contract: Project Lead + committee approve, then send to Raft.
These steps add transparency and do not replace Raft’s approval.
These steps add transparency. They do not replace Raft approval.


== Budget, tracking, and records ==
== Budget, tracking, and records ==
We plan an annual budget and update it quarterly.
* We plan an annual budget and update it quarterly.
Open Collective is our public dashboard for budgets and payouts.
* Open Collective is our public dashboard for budgets and payouts: [https://opencollective.com/vonet Open Collective].
Raft’s systems are the official books and records. :contentReference[oaicite:21]{index=21}
* Raft’s systems are the official books and records.
Keep working copies here; Raft holds the official record.
* Keep working copies here; Raft holds the official record.
* See also: [[Document Retention Policy]].


== Separation of duties (local) ==
== Separation of duties (local) ==
* Requester cannot be the approver.
* Requester ≠ Approver.
* Approver cannot be the payer.
* Approver ≠ Payer.
* Reconciler cannot be the requester or approver.
* Reconciler ≠ Requester or Approver.


== Documentation required ==
== Documentation required ==
Line 62: Line 69:


== Changes to these controls ==
== Changes to these controls ==
Raft may update Terms and Policies with notice. We follow updates. :contentReference[oaicite:22]{index=22}
* Raft may update terms and policies with notice.
* We follow updates and adjust this page.


== Contacts ==
== Contacts ==
Project Lead: listed on [[Team]].
* Project Lead: see [[Team]].
Raft Operations: team@raft.foundation (see Raft Handbook).
* Raft Operations: team@raft.foundation (see the Raft Handbook).


== Links ==
== Links ==
* Raft Handbook (policies): https://docs.raft.foundation/
* Raft Handbook: [https://docs.raft.foundation/ Raft Handbook]
* Open Collective (VONet): https://opencollective.com/vonet
* Open Collective (VONet): [https://opencollective.com/vonet Open Collective]

Revision as of 19:46, 30 August 2025

Summary

We follow Raft’s financial rules. This page shows how we comply. VONet is a program of Raft, not a separate entity.

Restricted Fund

  • All gifts go to a Raft Restricted Fund for VONet.
  • We never spend more than the fund balance.
  • Raft can redirect funds to meet the project purpose if needed.
  • For accounting and tax, the fund is Raft’s asset.

Disbursements

  1. Submit receipts or invoices as Raft directs.
  2. Raft staff review for project purpose and terms.
  3. After approval, Raft pays or reimburses.
  4. Get Raft’s **written** OK before any foreign expense.

Where money sits

  • Keep all project money in Raft accounts.
  • If money lands elsewhere, move it to Raft at once.

Contracts and purchasing

  • Raft signs leases, contracts, and MOUs.
  • AP/AR and disbursements run in Raft’s name.
  • Items bought for the project are Raft property used for VONet.

Administrative allocations and costs

  • Admin allocation on deposits:
    • 10% standard.
    • 9.25% on gifts ≥ $250,000 and < $1,000,000.
    • 8.5% on gifts ≥ $1,000,000.
  • Project pays: insurance tied to our work.
  • Project pays: card processing and merchant fees.
  • Project pays: employment and benefits costs for project staff.
  • Project may pay: project-specific legal (coordinate with Raft first).
  • Raft keeps any interest earned.

501(c)(3) compliance

  • All spending must serve our charitable purpose.
  • Lobbying is limited. Campaign activity is banned.
  • Donors cannot control use of funds.

VONet approval steps (local)

These checks come **before** Raft review.

  • Under $500: Project Lead approves in writing.
  • $500–$5,000: Project Lead + one committee member approve.
  • Over $5,000 or any contract: Project Lead + committee approve, then send to Raft.

These steps add transparency. They do not replace Raft approval.

Budget, tracking, and records

  • We plan an annual budget and update it quarterly.
  • Open Collective is our public dashboard for budgets and payouts: Open Collective.
  • Raft’s systems are the official books and records.
  • Keep working copies here; Raft holds the official record.
  • See also: Document Retention Policy.

Separation of duties (local)

  • Requester ≠ Approver.
  • Approver ≠ Payer.
  • Reconciler ≠ Requester or Approver.

Documentation required

Every expense must include:

  • Business purpose tied to project goals.
  • Itemized receipt or invoice.
  • Approval trail (see “VONet approval steps”).
  • Proof of delivery or completion when relevant.

Changes to these controls

  • Raft may update terms and policies with notice.
  • We follow updates and adjust this page.

Contacts

  • Project Lead: see Team.
  • Raft Operations: team@raft.foundation (see the Raft Handbook).
Retrieved from "https://wiki.vonet.org/index.php?title=Financial_Controls_Policy&oldid=198"