Financial Controls Policy

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).

Links

• Raft Handbook: Raft Handbook
• Open Collective (VONet): Open Collective