Insights from the Writings & Logistical Guidance on Fundraising
We are delighted to provide excerpts from the Writings regarding fundraising efforts as well as logistical guidance and resources. We pray that these resources will be of assistance to you as you plan inspiring and creative fundraisers in support of the Funds of the Faith.
Insights from the Writings
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Before planning a fundraising event for the Bahá’í Funds, remember that every Bahá’í fundraising event or activity should:
■ Strive to create love in the hearts of the believers
“Strive, therefore, to create love in the hearts in order that they may become glowing and radiant. When that love is shining, it will permeate other hearts even as this electric light illumines its surroundings. When the love of God is established, everything else will be realized. This is the true foundation of all economics. Reflect upon it. Endeavor to become the cause of the attraction of souls rather than to enforce minds. Manifest true economics to the people. Show what love is, what kindness is, what true severance is and generosity. This is the important thing for you to do.” — ‘Abdu’l-Bahá, Promulgation of Universal Peace, p. 239
■ Build and strengthen the relationship between the believers and the institutions
“…It is only evident that unless the flow of donations is regularly maintained by means of generous and continual support by all the believers, individually and collectively, the National Fund will never be able to meet the needs…of the Cause.”— Shoghi Effendi, letter dated 3 February 1941 to the National Spiritual Assembly of United States and Canada
“The supply of funds, in support of the national Treasury, constitutes, at present, the lifeblood of these nascent institutions which you are labouring to erect. Its importance cannot, surely, be overestimated. Untold blessings shall no doubt crown every effort directed to that end.” — Shoghi Effendi, Compilation of Compilations
■ Uphold the dignity of the Faith
“The House of Justice feels that it is important for the friends never to lose sight of the fact that contributing to the funds of the Faith is a ‘spiritual responsibility’ and ‘privilege’ of profound significance in the spiritual life of the individual believer, and care must be taken not to trivialize this aspect of Bahá’í life by applying to it too many “gimmicks” or treating it with a lack of dignity. At the same time, the Assemblies should not dampen the enthusiasm of those friends who, having only slender financial resources, devise imaginative ways of earning money for the work of the Faith.
Within this framework, there is clearly a difference in the range of activities open to individuals and those which it would be befitting and dignified for a Spiritual Assembly to engage in or sponsor.” — The Universal House of Justice, letter dated 26 June 1982, Developing Distinctive Bahá’í Communities
■ Preserve the devotional aspect of giving to the Fund
“Such gatherings for collections of funds are permissible if it is done with a true spirit of sacrifice, not when the audience is especially aroused to a frenzy and mob psychology is used to induce them to pay. Shoghi Effendi has repeatedly stated that no pressure should be used upon the friends and psychological pressure falls under that category. But there is much difference between such gatherings often used by religious bodies, and a true quiet, prayerful atmosphere when a person is, of his own accord, aroused to make some sacrifice. The distinction is very delicate, but it is for the Chairman to use his power to see that one desirable form is not corrupted into the other. All the activities of the Cause should be carried through in a dignified manner.
Shoghi Effendi is sure that the funds gathered at the last Convention were not due to the play of mob psychology but to the prayerful attitude of the friends and their desire to make further sacrifice.” — On behalf of Shoghi Effendi, letter dated 28 May 1932 to an individual
■ Remain consistent with Bahá’í principles
“Giving toward the Fund, therefore, is a ‘spiritual privilege’ not open to those who have not accepted Bahá’u’lláh of which no believer should deny himself. It is both a responsibility and a source of bounty. This is an aspect of the Cause which we feel is an essential part of teaching and deepening of new believers. The importance of contributing resides in the degree of sacrifice of the giver, the spirit of devotion with which the contribution is made, and the unity of the friends in this service; these attract the confirmations of God and enhance the dignity and self-respect of the individuals and the community.” — The Universal House of Justice, 7 August 1985 letter to all National Spiritual Assemblies
■ Promote unity among believers
“Until the public sees in the Bahá’í Community a true pattern, in action, of something better than it already has, it will not respond to the Faith in large numbers.” — Letter written on behalf of Shoghi Effendi, letter dated 13 March 1944 to an individual, Promoting Entry by Troops
There are many possibilities for Bahá’í fundraising activities. The careful planning of these many creative ways to meet our Fund goals as individuals, institutions and communities will provide wonderful opportunities to consult and deepen on the devotional aspects of contributing to the Fund. The need to link our material work with the creation of the Divine civilization promised by Bahá’u’lláh’s Revelation is prevalent in the Writings and requires special attention that should be a source of inspiration for our work.
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Giving to the National Bahá’í Fund is a spiritual privilege reserved only for those who openly proclaim their recognition of Baháʼu'lláh and to the establishment of His World Order.
“Our contributions to the Faith are the surest way of lifting once and for all time the burden of hunger and misery from mankind, for it is only through the System of Bahá’u’lláh — Divine in origin — that the world can be gotten on its feet, and want, fear, hunger, war, etc., be eliminated.”~ Shoghi Effendi
The Universal House of Justice reminds us that the call to carry out our work “will evoke a response in very heart that aches at the wretched condition of the world”...and that “there is reassurance in the knowledge that, amidst the disintegration, a new kind of collective life is taking shape which gives practical expression to all that is heavenly in human beings.”
The Universal House of Justice Exhorts Us to Remember : “that contributing to the funds of the Faith,” is both a “spiritual responsibility and a privilege of profound significance in the spiritual life of the individual believer.” Every effort made by loving individuals and our beloved institutions to connect the hearts of the friends to the lifeblood of His Cause, its material means, must reflect this “profound significance.”
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“To give and to be generous are attributes of Mine; well is it with him that adorneth himself with My virtues.” ~ Bahá’u’lláh
I desire distinction for you. The Bahá’ís must be distinguished from others of humanity. But this distinction must not depend upon wealth, that they should become more affluent than other people. I do not desire for you financial distinction. It is not an ordinary distinction I desire: not scientific, commercial, industrial distinction. For you I desire spiritual distinction, that is, you must become eminent and distinguished in morals. In the love of God you must become distinguished from all else. You must become distinguished for loving humanity, for unity and accord, for love and justice. In brief, you must become distinguished in all the virtues of the human world - for faithfulness and sincerity, for justice and fidelity, for firmness and steadfastness, for philanthropic deeds and service to the human world, for love toward every human being, for unity and accord with all people, for removing prejudices and promoting international peace. Finally, you must become distinguished for heavenly illumination and for acquiring the bestowals of God. I desire this distinction for you. This must be the point of distinction among you. ~ ‘Abdu’l-Bahá
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“It is therefore imperative for the individual American believer…to step forward, and dedicate their resources, their time, their very lives to a Cause of such transcendence that no human eye can even dimly perceive its glory. Let them resolve, instantly and unhesitantly, to place, each according to his circumstances, his share on the altar of Bahá’í sacrifice. ~Shoghi Effendi
“...contributing to the Fund should constitute an integral part of the spiritual life of every Bahá’í and be regarded as the fulfillment of a fundamental spiritual obligation…We urge all the friends to give deep thought to the importance of supporting the Cause financially and to the effect that Bahá’í activities have on the condition of the entire race.” ~The Universal House of Justice
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Every believer can contribute to the Fund. Not all believers can give public talks, not all are called upon to serve on administrative institutions. But all can pray, fight their own spiritual battles, and contribute to the Fund. If every believer will carry out these sacred duties, we shall be astonished at the accession of power which will result to the whole body, and which in its turn will give rise to further growth and the showering of greater blessings on all of us. ~The Universal House of Justice
The universal participation of the believers in every aspect of the Faith - in contributing to the Fund, in teaching, deepening, living the Bahá’í life, administering the affairs of the community, and above all, in the life of prayer and devotion to God - will endow the Bahá’í community with such strength that it can overcome the forces of spiritual disintegration which are engulfing the non-Bahá’í world, and can become an ocean of oneness that will cover the face of the planet.
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Whether it’s an individual initiative or a community-backed idea, projects often need resources to get started. While the institutions are certainly an option for finding support, keep in mind that the institutions play a guiding role.
“Individual initiative is a pre-eminent aspect of this power; it is therefore a major responsibility of the institutions to safeguard and stimulate it. Similarly, it is important for individuals to recognize and accept that the institutions must act as a guiding and moderating influence on the march of civilization. In this sense, the divine requirement that individuals obey the decisions of their Assemblies can clearly be seen as being indispensable to the progress of society. Indeed, individuals must not be abandoned entirely to their own devices with respect to the welfare of society as a whole; neither should they be stifled by the assumption of a dictatorial posture by members of the institutions.” From a letter dated 19 May 1994 from the Universal House of Justice to a National Spiritual Assembly. ~The Universal House of Justice
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“As to the sale of personal items for the benefit of Bahá’í funds, we begin with the principle that any believer may sell personal services or goods to anyone and do with the proceeds as he wishes, including giving any or all of them to Bahá’í purposes. In doing so, however, he should not represent to non-Bahá’í’s that such a sale is for the benefit of the Bahá’í fund as it is also a principle that it is improper to solicit funds from non-Bahá’í’s in the name of the Faith for any purpose. This includes the sale of food and admission to entertainment.”
Letter written on behalf of Universal House of Justice, April 1, 1968 to the National Spiritual Assembly of Panama April 1, 1968
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“First there is the principle that any believer may sell personal services or property to anyone and do with the proceeds as he wishes, including giving any or all of them to Bahá’í purposes. Thus, if a Bahá’í concert artist gives a concert to which admission is charged, he is free, if he so wishes, to give the money so earned to the Fund or to any charity of his choice. In giving the concert, however, he should not represent to non-Bahá’ís that the concert is for the benefit of the Bahá’í Fund or is given on behalf of Bahá’ís for a charity, which brings us to the second principle: that it is improper for Bahá’ís to solicit funds from non-Bahá’ís in the name of the Faith for any purpose. If a non-Bahá’í insists on making a monetary contribution it may be accepted with the express understanding that it will be used only for charitable or philanthropic.”
— The Universal House of Justice, letter dated 19 March 1973 to a Local Spiritual Assembly, Lights of Guidance
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"There is no objection to the friends' holding an auction among Bahá’ís for the purpose of contributing the proceeds to the fund, nor is there any objection to Bahá’ís' selling their own property to non- Bahá’ís for its fair market value and later contributing the proceeds to the fund, although no representation should be made at the sale about the proceeds going to the Bahá’í fund. The House of Justice feels, however, that it is important for the friends never to lose sight of the fact that contributing to the funds of the Faith is a spiritual responsibility and privilege of profound significance in the spiritual life of the individual believer, and care must be taken not to trivialize this aspect of Bahá’í life or to treat it with a lack of dignity. At the same time, the Assemblies should not dampen the enthusiasm of those friends who, having only slender financial resources, devise imaginative ways of earning money for the work of the Faith.
"As your Assembly is considering sponsoring an auction under its direct auspices, the House of Justice suggests that you should ascertain whether the holding of auctions is legally permissible, since we are informed that in some countries it is legal only if conducted by a licensed auctioneer."
(From a letter written on behalf of the Universal House of Justice to the National Spiritual Assembly of Chile, July 8, 1984)
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“There is no objection to an Assembly’s giving contributions in kind to a professional auctioneer to sell and then to use the proceeds for the fund. Whether it would be proper to hold such an “ordinary auction” among Bahá’í’s would depend upon the Assembly’s judgment as to whether a properly dignified atmosphere could be observed and also whether it could be construed as bringing pressure to bear upon friends to contribute which would, of course, be undesirable. In general, the House of Justice prefers not to encourage such auctions for the Fund.”— Letter written on behalf of the Universal House of Justice to a National SpiritualAssembly, May 26, 1982
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“Undoubtedly there will be a time on the program of each Conference in which the needs of the Fund will be called to the attention of the friends, and facilities will be provided where the believers can quietly give contributions or record pledges. There should be no public display of contributing or pledging.”— The Universal House of Justice letter dated 3 April 1967 to the National Spiritual Assembly of the United States. 14 February 2019
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“In review of your Minutes for 15 March 1967, we note Item 25-8 in which the Treasurer suggests a lottery as a means of disposing of a Persian carpet which has been given to you by one of the believers. We do not feel this is an appropriate way in which to raise funds…As to participation in Bingo games by a Local Spiritual Assembly with the intention of contributing to the Fund, we do not feel it is appropriate for funds for the Faith to be raised through games of chance or raffles.”
— A letter written on behalf of the Universal House of Justice, letter dated 20 November 1980.
“The holding of raffles has not been specifically mentioned in the Kitáb-i-Aqdas, and the Universal House of Justice has not legislated on the matter. However, the House of Justice does not at present consider it desirable for Bahá’í institutions to raise funds by this method.”
(From a letter written on behalf of the Universal House of Justice to the National Spiritual Assembly of Panama, January 15, 1984)
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“...Neither do we think it is proper for a Bahá’í institution to sponsor a 'garage sale of personal items contributed by believers for the benefit of a Bahá’í fund. This is not to say that an Assembly may not sell items of property to non-Bahá’ís for fair market value, but rather that non-Bahá’ís should not be led to purchase items at a fund-raising sale on the representation that the proceeds are to be used for Bahá'í purposes.”
(Ibid.)
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“There is, however, a wide range of fund-raising activities in which Bahá’ís may engage. For example, Bahá’í institutions are free to approach governments and institutions which hold themselves out as wishing to fund charitable activities, to apply for grants to assist in specific humanitarian projects. A Bahá’í School which has both Bahá’í and non-Bahá’í pupils is free to raise funds for its own development by such activities and concerts, etc…or by appeals to parents; in this instance a humanitarian institution is clearly defined, and the funds are being collected in its name rather than in the name of the Faith.”— Letter written on behalf of the Universal House of Justice, December 30, 1984 to a National Spiritual Assembly.
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Encouraging individuals with limited financial means to contribute to the Fund involves emphasizing the spirit of sacrifice and highlighting alternative forms of support. Here's a message that could be conveyed:
"Dear friends, your contribution to the Fund is not measured by the amount but by the spirit of selflessness. If financial constraints limit your ability to give substantially, consider making a small, regular contribution – even the smallest amount can have a significant impact when combined with the collective efforts of the community. Additionally, explore alternative ways to support, such as dedicating your time, skills, or resources. Share your talents with the community, engage in acts of service, or contribute in-kind donations. Remember, the essence of giving lies in the purity of intention and the willingness to play a part in the collective advancement of Bahá'í endeavors. Your heartfelt commitment, regardless of the size, adds to the unity and strength of our community."
This approach encourages a sense of inclusivity, recognizing the value of various forms of support beyond monetary contributions.
Logistical Guidance
I. Logistical Resources
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Planning an inspiring and effective fundraising event requires careful preparation, adherence to Bahá’í principles, and compliance with financial regulations. Below are key guidelines and resources to consider when organizing fundraising activities.
I. Fundraising Resources
1. Sacred Writings & Guidance
Consult Sacred Trust, pages 149-154, to deepen your understanding of appropriate fundraising activities in alignment with Bahá’í principles.
2. Online Contribution System (OCS)
The Online Contribution System (OCS) is the official platform for making and managing contributions to the National Fund.
OCS is available to registered members of the Bahá’í Faith in the United States.
Access OCS here:Online Contribution System
II. Fundraising Event Guidelines
1. Receiving & Documenting Donations
When receiving items for an auction, the donor’s receipt should only describe the item(s) donated.
It is the donor’s responsibility to determine the value for tax purposes. If a treasurer assigns a value and the IRS disputes it, the Local Spiritual Assembly may be held liable for taxes and fines.
2. Receipting In-Kind Contributions
The treasurer can assign a value only if a receipt is available for items purchased. Example: A receipt from a grocery store for Feast refreshments.
If an in-kind contribution exceeds $5,000, special IRS documentation and valuation rules apply. Visit the IRS website for details.
3. Auction & Fundraiser Purchases
When receipting auction purchases or fundraiser goods/services, the fair market value of the item(s) must be deducted from the total amount to determine the charitable contribution.
4. Non-Monetary Contributions
The value of time contributed by an individual cannot be treated as a charitable contribution, no matter how well-documented.
III. Receipting Contributions
1. Required Information on Every Receipt
A valid receipt must include:
Donor’s name
Date of contribution
Unique receipt number
Receiving charitable organization (e.g., Local Spiritual Assembly)
Name(s) of the Fund(s) receiving contributions and allocated amounts
For funds intended for use outside the U.S.: The donor must explicitly state it is their "wish, hope, and desire" for the contribution to be sent outside the U.S., granting the U.S. charitable organization authority to override the earmarking for tax deductibility.
Treasurer’s signature
IV. Special Considerations for Stock Donations
1. Handling Gifts of Appreciated Stock
Stock donations should be received in the name of the Local Spiritual Assembly and sold immediately.
Receipts for stock gifts must include:
Date the stock was received
Number of shares received
High, low, and closing price on the day of receipt
V. General Financial & Legal Considerations
1. Handling Contributions Properly
Contributions must never be held in an individual's name or deposited into a personal bank account.
All contributions must remain under the name of the Local Spiritual Assembly.
2. Compliance with Tax Regulations
Fundraising events must comply with non-profit and charitable giving tax laws before, during, and after the event.
This structured list ensures clarity, easy reference, and compliance with both Bahá’í principles and legal requirements. Let me know if you need any modifications!
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Consult Sacred Trust, pages 149-154, to deepen your understanding of appropriate fundraising activities in alignment with Bahá’í principles.
In alignment with Bahá’í principles, appropriate fundraising activities must reflect dignity, spirituality, and voluntary participation. The guidance emphasizes several key points:
Spiritual Responsibility and Privilege – Contributing to the Fund is not merely a financial transaction but a deeply spiritual responsibility and privilege that enhances the connection between the believer and the CauseElements of Spiritual F….
Dignity and Devotional Aspects – Fundraising should avoid “gimmicks” and maintain dignity. Assemblies are encouraged to ensure fundraising activities preserve the devotional spirit of givingElements of Spiritual F….
Acceptable Fundraising Methods – Bahá’í institutions may approach governments or organizations that provide grants for humanitarian projects. Schools that serve both Bahá’í and non-Bahá’í students may raise funds through concerts or appeals to parents, as long as the funds are clearly designated for the institution rather than the FaithElements of Spiritual F….
Avoiding Pressure or Coercion – Contributions should be strictly voluntary. The Universal House of Justice advises against using auctions or games of chance (e.g., raffles, bingo) as fundraising methods if they exert psychological pressure or create an atmosphere of competition rather than spiritual sacrificeElements of Spiritual F….
Encouraging Sacrificial Giving – Fundraising activities should inspire believers to give out of love and commitment rather than obligation. The focus should be on creating a prayerful, voluntary spirit of generosity, rather than on material incentivesElements of Spiritual F….
Unity and Community Involvement – Fundraising efforts should promote unity among believers, fostering a sense of collective purpose rather than competition or exclusionElements of Spiritual F….
By adhering to these principles, fundraising activities within the Bahá’í community align with the Faith’s spiritual and ethical standards, ensuring that financial contributions support the advancement of Bahá’í institutions while maintaining their sacred and voluntary nature.
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The Online Contribution System (OCS):
OCS is available to registered members of the Bahá’í Faith in the United States.
Access OCS here: Online Contribution System
The Online Contribution System (OCS) is the official platform used by the National Spiritual Assembly of the Bahá'ís of the United States to receive contributions to the various Funds of the Faith. It allows registered Bahá'ís in the U.S. to make and manage their individual contributions conveniently and securely.
Key Features of OCS:
Flexible Contributions: Users can make one-time or recurring contributions of any amount as often as they wish.
Multiple Payment Methods: Accepted payment methods include checking and savings accounts, all major credit cards, and PayPal.
Local Fund Contributions: Local Treasurers can also use OCS to receive online contributions to their local Fund and are encouraged to register for this purpose.
Security: The National Spiritual Assembly exercises great care to protect personally identifiable information, ensuring that OCS is safe and secure for use by individuals and their Assemblies.
Accessing OCS:
To access OCS, you will need a Bahá'í Online Services (BOS) account. This account allows you to contribute online through OCS, search the Guidance Library, and update your personal information.
Creating a BOS Account:
Visit the Bahá'í Online Services Account Creation Page.
Follow the prompts to create your account.
Once your account is created, you can use the same credentials to log into OCS.
Logging into OCS:
Go to the OCS Login Page.
Enter your Bahá'í ID and password.
If you're logging in for the first time, you may be prompted to change your password.
If you encounter any issues, such as a forgotten password, you can click on “Forgot Password” to receive a temporary password.
Additional Contribution Methods:
While OCS is the most secure and efficient way to contribute, other methods are available:
By Mail: Make checks payable to the Bahá'í National Fund. If you wish to earmark your contribution for a specific fund, write that fund in the memo section. Mail to:
National Bahá'í Fund
PO BOX 541
Wilmette, IL 60091-0541By Phone: Call (847) 733-3472 and ask for the Contributions department to pay directly by credit card.
For more detailed information and user guides, please visit the Office of the Treasurer's Online Contribution System page.
If you need assistance, you can email the OCS Support Team or call (847) 425-7979.
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Whether you're organizing a fundraiser for the Bahá’í Fund or raising funds for a specific project, understanding the difference between the two can be helpful to ensuring alignment with Bahá’í principles and proper handling of contributions.
There are two main types of fundraising within that could occur within a Bahá’í community:
1. Fundraisers for the Bahá’í Fund
A fundraiser is an event or campaign exclusively dedicated to raising contributions for a Bahá’í Fund. These funds support the Faith’s activities at the Local, Regional, National, Continental, or International level, including special projects like the Shrine of ‘Abdu’l-Bahá.
Key Guidelines for Fundraisers for the Bahá’í Fund:
✅ Purpose: Raise voluntary contributions for an official Bahá’í Fund.
✅ Who Can Contribute: Only Bahá’ís may contribute.
✅ Spiritual Atmosphere: Contributions should be made in a spirit of love and service, and must be done in a strictly confidential manner.
✅ Examples of Fundraising Activities:Silent Auctions (Bahá’ís donate items; proceeds go to the Fund)
Community Dinners (Proceeds support the National Fund)
Art Sales (Funds dedicated to the Continental Fund or a specific Bahá’í project)
🚫 Important Restrictions:
Only Bahá’ís may contribute to the Bahá’í Fund.
Fundraising should be conducted with dignity and sincerity, avoiding commercialism or high-pressure solicitation.
2. General Fundraising for Specific Needs
Fundraising in a broader sense refers to collecting money for a specific activity or project that may involve anyone. These funds are not given to the Bahá’í Fund but may support initiatives like books, travel expenses, humanitarian efforts, and service projects.
Key Guidelines for General Fundraising:
✅ Purpose: Raise funds for a particular initiative, such as a service project or community-building activity that are not related to teaching, promotion, or the expansion of the Bahá’í Faith.
✅ Who Can Contribute: anyone may participate.
✅ Examples of Fundraising Activities:Raising funds for a youth service project.
Supporting travel expenses for a community-building initiative.
Selling books or artwork to fund social action programs.
🚫 Important Considerations:
Funds must not be confused with contributions to the Bahá’í Fund.
Transparency is key—funds should be used exactly as intended.
Why This Distinction Matters
Ensuring Proper Use of Contributions
Contributions to the Bahá’í Fund are sacred and must be handled according to Bahá’í financial guidelines.
Fundraising for community projects should be clearly defined to prevent confusion.
Clarifying Donor Participation
Only Bahá’ís may contribute to any of the Bahá’í Funds.
Both Bahá’ís and those who are not Bahá’ís may be able to contribute to general fundraising efforts.
Maintaining the Spiritual Nature of Giving
Contributions to the Bahá’í Fund are an act of faith and should be treated with dignity.
Fundraising for community projects should also reflect Bahá’í principles of unity, service, and justice.
II. Fundraising Event Guidelines
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Receiving and documenting donations within the Bahá'í community is guided by principles that emphasize the spiritual and voluntary nature of contributions while ensuring integrity, transparency, and accountability in financial stewardship.
1. The Role of the Assembly and Treasurer in Receiving Contributions
Responsibility & Oversight
The National Spiritual Assembly and Local Spiritual Assemblies are responsible for ensuring all contributions are received, recorded, and used appropriately.
The Treasurer is the designated individual for handling funds but does so on behalf of the entire Assembly, meaning all members must be aware of financial matters.
Assemblies should periodically review financial reports to maintain accountability and ensure stewardship of community funds.
Issuing Receipts & Record Keeping
Every donation should be properly receipted, whether monetary or in-kind.
Maintaining clear and accurate records is crucial for transparency and future reference.
The Assembly should ensure that records distinguish between general and earmarked funds, ensuring that each contribution serves its intended purpose.
Confidentiality of Contributions
Contributions are treated with strict confidentiality; only those responsible for financial management should have access to individual donor information.
Assemblies must not disclose donor names or amounts unless the donor expressly permits.
2. Types of Donations & How They Are Managed
General Contributions
Contributions to the National Bahá’í Fund or other institutional funds (local, continental, international).
These donations support various Faith-related expenses, including:
Teaching efforts
Administration
Property maintenance
Earmarked Contributions
Donations designated for a specific purpose (e.g., Bahá’í properties, international teaching efforts).
Funds must be used strictly for the designated purpose.
If the designated purpose is no longer viable, the Assembly must consult the donor before redirecting the funds.
Restricted vs. Unrestricted Giving
Unrestricted donations allow the Assembly to allocate funds where they are most needed.
Restricted donations (earmarked) are honored, but donors are encouraged to give without restrictions to enable greater flexibility in funding priorities.
In-Kind Donations
Non-monetary contributions, such as real estate, goods, or services, must be properly documented and their value assessed.
The Assembly should determine how these items will be used or liquidated for the benefit of the Fund.
3. Documenting & Reporting Contributions
Best Practices for Documentation
Contributions should be tracked using financial software or ledgers.
Monthly and annual financial reports should summarize income, expenses, and balances.
The Treasurer should regularly update the Assembly on financial status and fundraising needs.
Audit & Accountability Measures
Assemblies should prepare annual financial reports to maintain transparency.
If the community is large, external audits may be recommended to validate fund management.
Financial documents should be stored securely to protect donor confidentiality.
4. The Spiritual Dimension of Giving
Giving as a Sacred Act
Contributions to the Fund are considered a spiritual privilege rather than an obligation.
The Universal House of Justice emphasizes that contributing is a fundamental part of Bahá’í identity and should be done in the spirit of sacrifice.
Encouraging Contributions Without Pressure
Donations must be completely voluntary.
Bahá’í institutions should educate believers about the spiritual benefits of giving, rather than soliciting contributions in a way that feels obligatory.
“No pressure must ever be brought on the Bahá’ís to contribute; it must be voluntary, and should be considered confidential.” – Shoghi Effendi
Contributions from Youth & Children
Young people are encouraged to contribute regularly, as it helps develop their spiritual habits.
Even small contributions are significant, fostering a lifelong commitment to supporting the Faith.
5. Fundraising & Ethical Guidelines
Accepting Donations from Non-Bahá’ís
Only Bahá’ís may contribute to the Faith’s administrative funds.
Non-Bahá’ís may contribute to charitable or humanitarian efforts sponsored by Bahá’í institutions (e.g., disaster relief, social programs).
Ethical Fundraising Practices
The Universal House of Justice advises that fundraising should be dignified and uplifting.
Any fundraising efforts must:
Promote unity within the community.
Maintain the dignity of the Faith (i.e., avoid gimmicky or coercive methods).
Encourage voluntary and sacrificial giving.
6. The Role of Ḥuqúqu’lláh (The Right of God)
Difference Between Ḥuqúqu’lláh & Fund Contributions
Ḥuqúqu’lláh is a separate spiritual obligation and should not be confused with voluntary donations to the Bahá’í Funds.
It is calculated based on surplus wealth after living expenses and debts are deducted.
Believers are encouraged to settle their Ḥuqúqu’lláh before making other contributions.
Providing for Ḥuqúqu’lláh in a Will
Believers should include unpaid Ḥuqúqu’lláh in their wills to ensure it is settled before distributing their estate.
The Universal House of Justice advises believers to consult legal professionals to ensure this is clearly stated in their wills.
7. Principles of Receiving & Documenting Donations
Receiving and documenting donations within the Bahá'í community is guided by fundamental principles:
Responsibility & Transparency
The National Spiritual Assembly ensures all contributions are properly receipted and that records of receipts and disbursements are accurately maintained.
The Treasurer, though the primary handler of funds, operates with the support of the entire Assembly, reinforcing transparency and accountability.
Confidentiality
Contributions are treated with strict confidentiality.
Donor names and amounts must not be disclosed unless the donor consents.
Voluntary Nature of Contributions
Contributions must be freely given and never solicited with pressure.
The focus is on spiritual sacrifice and love for the Cause, rather than obligation.
Inclusivity
All members, regardless of financial means, are encouraged to give.
The act of giving fosters spiritual growth and unity among believers.
Record Keeping
Treasurers should maintain accurate records and issue receipts.
Contributions should be tracked separately for general and earmarked funds to ensure proper allocation.
Earmarked Contributions
Assemblies must honor donor designations unless they obtain permission to reallocate funds.
If an earmarked project cannot be fulfilled, funds should be returned or redirected with donor consent.
Spiritual Significance of Giving
Contributions are a sacred privilege that enhance one’s connection to the Faith.
The act of giving is an essential part of Bahá’í life, fostering spiritual growth and community strength.
Conclusion
Receiving and documenting donations in the Bahá’í community is not merely a financial task but a sacred responsibility. Contributions are viewed as an act of devotion, and their management must reflect trust, transparency, and integrity.
By upholding these principles, the Bahá’í community ensures that financial contributions support the Faith’s growth while honoring the spiritual values of generosity, unity, and sacrifice.
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What Are In-Kind Contributions?
An in-kind contribution is a non-monetary donation of goods or services instead of cash. These contributions play a vital role in fundraising efforts and community projects, helping to support Bahá’í institutions and activities. Proper handling ensures transparency, compliance with tax regulations, and alignment with Bahá’í principles.
Types of In-Kind Contributions
1. Goods (Physical Items)
Donations of tangible items that can be used directly or sold to raise funds.
✅ Examples:Artwork, books, or jewelry for an auction.
Food, decorations, or supplies for an event.
Office equipment like printers, furniture, or technology.
2. Services (Professional or Skilled Labor)
Time and expertise offered at no cost. While valuable, personal services are not tax-deductible.
✅ Examples:Graphic design, legal, or financial consulting services.
Photography or videography for a Bahá’í event.
A venue owner offering free use of space for a fundraiser.
3. Real Estate or Property Use
Temporary or permanent use of real estate or facilities.
✅ Examples:A business donates space for a community gathering.
A Bahá’í offers a home for a deepening session or fundraiser.
Guidelines for Accepting & Documenting In-Kind Contributions
1. Receipting & Tax Compliance
📜 Every receipt must include:
✔ Donor’s name
✔ Date of contribution
✔ Description of donated item(s) or service(s)
✔ Name of the Bahá’í institution receiving the contribution
🚫 Do not assign a dollar value—it is the donor’s responsibility to determine the value for tax purposes.📝 Exception: If an item is purchased specifically for donation and a store receipt is provided (e.g., buying refreshments for Feast), the treasurer may reference the purchase price.
2. High-Value In-Kind Donations ($5,000+)
If an in-kind donation exceeds $5,000, the IRS requires special documentation.
Donors must complete IRS Form 8283 and obtain a professional appraisal.
Visit the IRS website for details.
3. Auctions & Fundraisers
When selling donated goods or services at an auction or fundraiser, the fair market value must be deducted from the final price to determine the charitable portion of the contribution.
Example: If an artwork is valued at $200 and sells for $500, only the $300 excess is tax-deductible.
4. Contributions That Are Not Tax-Deductible
🚫 The IRS does NOT allow tax deductions for:
Personal volunteer time or services (e.g., legal, photography, consulting).
Donated use of space (e.g., offering a venue for free).
Loaned items that remain the property of the donor.
Best Practices for Managing In-Kind Contributions
Before Accepting a Donation
✔ Confirm the donation aligns with Bahá’í principles and fundraising needs.
✔ Ensure the recipient institution (Local Assembly, National Fund, etc.) can properly use or manage the donation.During the Donation Process
✔ Issue a receipt with a clear description of the item or service.
✔ Do not assign a dollar value (except where purchase receipts are available).
✔ Maintain records of all in-kind contributions for transparency and accountability.After Receiving an In-Kind Contribution
✔ Send a thank-you letter to acknowledge the donor’s generosity.
✔ If the item is being sold or auctioned, issue a receipt reflecting fair market value rules.Examples of Properly Documented In-Kind Contributions
Example 1: Donated Catering Services for a Bahá’í Fundraiser
🔹 A caterer provides food for a Bahá’í fundraising dinner.
📜 Receipt Example:
"Catering services for Fundraiser Dinner provided as an in-kind donation."
🚫 No dollar amount assigned.Example 2: Donated Artwork for an Auction
🔹 An artist donates a painting for a silent auction.
📜 Receipt Example:
"Original painting donated for [Fund Name] auction."
🚫 No dollar amount assigned.Example 3: Donated Office Equipment
🔹 A Bahá’í donates a new printer to the Local Spiritual Assembly.
📜 Receipt Example:
"One HP LaserJet Pro printer donated."
✔ If a store receipt is available, the treasurer may reference the purchase price.Final Thoughts
In-kind contributions are a powerful way to support Bahá’í activities while keeping fundraising efforts diverse and impactful. By following these guidelines, we can:
✔ Maintain transparency and integrity.
✔ Comply with tax regulations.
✔ Honor the generosity of donors with proper documentation.If you have questions about in-kind contributions, contact your Local Spiritual Assembly, the Regional Bahá’í Council, or the Office of the Treasurer for guidance.
Need to Make a Contribution?
Use the Online Contribution System (OCS) to securely submit donations to the Bahá’í Fund.
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Guidelines for Receipting and Charitable Contributions
Understanding Fair Market Value (FMV) in Fundraising Transactions
When processing donations for auction purchases or fundraiser goods/services, the IRS and financial best practices require that the fair market value (FMV) of the item(s) received be deducted from the total purchase amount to determine the portion eligible as a charitable contribution.
The FMV is the price that the item or service would sell for in an open market. This ensures that only the amount exceeding the item’s value qualifies as a tax-deductible donation.
1. Why This Matters
Ensures compliance with tax regulations governing charitable deductions.
Maintains financial transparency and protects both donors and the institution.
Prevents misrepresentation of contributions for tax purposes.
Encourages ethical fundraising while still allowing contributors to support the Bahá'í Funds.
2. How to Determine Charitable Contributions
To calculate the charitable contribution amount, use the following formula:
Total Payment−Fair Market Value (FMV)=Charitable Contribution\text{Total Payment} - \text{Fair Market Value (FMV)} = \text{Charitable Contribution}Total Payment−Fair Market Value (FMV)=Charitable Contribution
For example:
If an individual wins a silent auction item for $500 and the item’s FMV is $300, the charitable donation is:
$500 - $300 = $200 (charitable contribution)
If a person buys a dinner ticket to a fundraiser for $100, and the value of the meal is $40, the tax-deductible portion is:
$100 - $40 = $60 (charitable contribution)
3. Receipting Auction & Fundraiser Purchases
When issuing receipts for auction or fundraiser contributions:
The receipt should clearly state:
The total payment amount.
The FMV of the item/service received.
The remaining amount that qualifies as a charitable donation.
If the FMV equals or exceeds the amount paid, no charitable deduction is allowed.
The receipt should not assign a value to non-monetary gifts; donors must determine the tax-deductible portion based on IRS regulations.
A standard statement such as:
“In accordance with tax regulations, your charitable contribution is limited to the amount exceeding the fair market value of the item/service received. Please consult with a tax professional for additional guidance.”
should be included.
Example of a Receipt Statement for an Auction Purchase:
Thank you for your generous contribution to the Bahá'í Fund. You paid $500 for a silent auction item. The estimated fair market value of the item is $300, making your charitable contribution $200. No goods or services were provided in exchange for this contribution, except as noted above.
4. Key Considerations for Fundraising Events
Pre-Set FMV for Items: Clearly define FMV in auction programs, event brochures, or bid sheets before purchases occur.
Donation of Auction Items: If a donor gives an item for an auction, their contribution is the item’s FMV, not the auction price.
Tangible vs. Intangible Benefits: If donors receive exclusive access, entertainment, or perks, these may also have an FMV that reduces the deductible amount.
5. Examples of Common Auction & Fundraiser Purchases
Fundraiser TypeTotal PaidFMV of Goods/ServiceCharitable ContributionSilent Auction Item$1,000$700$300Fundraiser Dinner$150$50$100Concert Fundraiser$50$50$0Artwork Donation for Auction$500(Donor sets FMV)$500 (as a non-cash donation)
6. IRS Compliance & Legal Notes
According to IRS guidelines, only the portion exceeding FMV is tax-deductible.
If the FMV is not disclosed, the entire purchase may be non-deductible.
For non-cash donations, the donor is responsible for valuing the item for tax reporting.
Tax-exempt organizations must provide proper documentation for charitable contributions over $250.
7. Best Practices for Assemblies & Treasurers
✅ Clearly communicate FMV upfront in promotional materials.
✅ Provide itemized receipts showing FMV and donation amount.
✅ Ensure proper documentation for auction purchases and non-cash gifts.
✅ Encourage donors to consult tax professionals for personal deductions.
✅ Maintain transparency and ethical fundraising standards in all donation transactions.Final Thoughts
Properly receipting auction and fundraiser purchases ensures that contributions remain tax-compliant and ethically recorded. By deducting FMV from total payments, the Bahá’í Funds maintain financial integrity while allowing contributors to sacrificially and responsibly support the Faith’s work.
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Guidelines for Receiving & Documenting In-Kind Donations
Understanding Non-Monetary Contributions
Non-monetary contributions, also known as in-kind donations, refer to gifts of goods, property, or services rather than cash. These contributions play a vital role in supporting the Bahá’í Funds and community activities while allowing believers to offer tangible resources to advance the Faith.
1. Types of Non-Monetary Contributions
Non-monetary contributions can be categorized into several types:
A. Goods & Physical Assets
These include tangible property donated for use by the community or for fundraising purposes, such as:
Real Estate (land, buildings, property for Bahá’í centers, schools, or projects)
Vehicles (cars, buses, bicycles for Bahá’í use)
Office Equipment & Supplies (computers, printers, furniture)
Books & Educational Materials (Bahá’í literature, study guides)
Food & Beverages (for events, gatherings, or hospitality)
Auction & Fundraiser Items (artwork, handmade crafts, memorabilia)
Musical Instruments & Art Supplies (for children’s classes or youth programs)
Clothing & Household Goods (for charitable projects)
B. Professional Services & Skills
Donors may contribute services that support the community, such as:
Legal Services (pro bono assistance with contracts, estate planning)
Accounting & Financial Management (bookkeeping for Bahá’í institutions)
Graphic Design, Marketing, & Web Development
Event Planning & Catering
Construction & Repairs (building Bahá’í centers, maintenance work)
Translation Services (interpreting Bahá’í materials into multiple languages)
Medical & Wellness Services (healthcare for Bahá’í initiatives)
C. Intellectual Property & Digital Assets
Software & Technology Licenses
Online Course Subscriptions
Copyrighted Bahá’í-Related Content (photographs, music, literature)
D. Financial Securities
Stocks & Bonds
Mutual Funds & Other Investments
Cryptocurrency (where legally accepted by Bahá’í institutions)
2. Documenting & Receipting Non-Monetary Contributions
Since non-monetary gifts do not involve direct cash transactions, they must be carefully documented to ensure compliance with legal, financial, and ethical standards.
A. Determining the Fair Market Value (FMV)
FMV is the estimated price that the donated item or service would sell for in an open market.
The donor is responsible for assigning a value to the item for tax purposes.
The Bahá’í institution should not appraise or assign a value to donated goods/services but can acknowledge the donation with a description of the item.
B. Issuing Donation Receipts
A formal acknowledgment letter or receipt should include: ✅ Donor’s name and contact information
✅ Date of the donation
✅ Description of the donated item or service (without specifying value)
✅ Purpose or intended use of the gift (if applicable)
✅ Statement that no goods or services were provided in return, unless applicable
✅ A disclaimer: “For tax purposes, the donor is responsible for determining the fair market value of this contribution.”Example Receipt for Non-Monetary Donations:
Thank you for your generous in-kind donation to the Bahá’í Fund. We acknowledge receipt of the following donation: [Description of item/service]. No goods or services were provided in exchange for this contribution. Please consult with your tax advisor regarding any potential charitable deductions.
C. Reporting & Record-Keeping
Assemblies should maintain accurate records of non-monetary donations.
For significant gifts (e.g., real estate, vehicles), legal and tax professionals should be consulted.
Donated services are not tax-deductible, but a receipt can still be provided as a courtesy.
3. Special Considerations for Different Types of Non-Monetary Contributions
A. Real Estate & Property Donations
Must be free of legal encumbrances or outstanding liabilities.
Requires review by the National Spiritual Assembly before acceptance.
May be sold to generate funds unless designated for community use.
B. Vehicles
If used for Bahá’í activities, proper insurance and ownership transfer must be completed.
If sold, proceeds should be documented and directed appropriately.
C. Goods for Auctions & Fundraisers
FMV should be estimated before the event for donor reference.
Only the amount paid exceeding FMV is considered a charitable contribution.
D. Professional Services
While time and labor are not tax-deductible, service donors may deduct related expenses (e.g., travel, materials).
4. Ethical & Compliance Considerations
Non-monetary gifts must align with Bahá’í principles (e.g., no items related to gambling, alcohol, or unethical business practices).
Gifts should be given voluntarily, without expectations of influence over community decisions.
Institutions should ensure transparency in managing donated assets.
5. Benefits of Non-Monetary Contributions
✅ Expands giving opportunities beyond financial means.
✅ Reduces direct operational costs for Bahá’í institutions.
✅ Encourages diverse talents and resources to serve the Faith.
✅ Strengthens community collaboration and engagement.Final Thoughts
Non-monetary contributions are a powerful way to support the Bahá’í Funds beyond cash donations. By following ethical, legal, and transparent guidelines, these donations ensure sustainable growth and spiritual service in the Faith.
III. Receipting Contribution
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Proper documentation of donations and contributions is essential for maintaining transparency, compliance, and donor confidence. Each receipt should contain specific information to meet legal, tax, and ethical guidelines. Below is a breakdown of the required elements for every donation receipt issued by Bahá’í institutions.
1. Essential Elements of a Donation Receipt
Each receipt must include the following details:
A. Donor Information
✅ Full Name of Donor – Ensure the name is accurate, especially for tax reporting.
✅ Address (if available) – This is helpful for donor records and IRS compliance.
✅ Email or Contact Information (optional) – Useful for digital acknowledgments.B. Organization Information
✅ Full Legal Name of the Bahá’í Institution – The recipient institution, such as the National Bahá’í Fund, Local Spiritual Assembly, or Bahá’í-inspired initiative.
✅ Address of Institution – Ensures clarity for tax and legal purposes.
✅ Tax-Exempt Status – A statement confirming that the institution is a registered non-profit religious entity.Example:
This receipt acknowledges a contribution to the Bahá’í Fund, a recognized tax-exempt religious organization.
C. Date of Contribution
✅ The exact date when the donation was received is required.
✅ If the donation was given in installments, list the dates of each payment.D. Amount & Type of Contribution
✅ Monetary Donations
Clearly state the amount donated ($50, $100, etc.).
Specify the currency if international donations are involved.
✅ Non-Monetary (In-Kind) DonationsProvide a detailed description of the item (e.g., "One laptop, brand/model").
Do not assign a dollar value (donors must determine the fair market value for tax purposes).
E. Purpose of Donation (if specified by donor)
✅ If a donation is earmarked (e.g., “For the construction of a Bahá’í center” or “For international teaching efforts”), include this designation.
✅ If unrestricted, state that the donation will be used where most needed.Example:
This contribution has been designated for [Bahá’í International Fund / Local Bahá’í Center]. If no designation was made, it will be used for general purposes as determined by the institution.
F. Statement of Goods or Services Provided
✅ If no goods or services were received in exchange for the donation, the receipt must state:
“No goods or services were provided in exchange for this donation.”
✅ If goods or services were provided, list their fair market value (FMV) and indicate the portion that is tax-deductible.Example for a Fundraiser Dinner Ticket Purchase ($100 total, FMV $40 meal):
Total Amount: $100
Fair Market Value of Dinner: $40
Tax-Deductible Contribution: $60G. Receipt Number (For Record Keeping)
✅ Assigning a unique receipt number helps with tracking and auditing.
✅ This is especially useful for large-scale fundraising events and annual tax reporting.H. Signature or Official Stamp
✅ Include a signature (digital or handwritten) or an official institutional seal for authenticity.
✅ If sent via email, a digital acknowledgment is sufficient.2. Sample Receipt Format (Monetary Contribution)
Bahá’í Fund Contribution Receipt
📍 [Name of Bahá’í Institution]
📍 Address: [Institution’s Address]
📅 Date of Contribution: [MM/DD/YYYY]
👤 Donor Name: [Full Name]
💰 Amount Contributed: $[Amount]
🎯 Purpose (if applicable): [General Fund / Specific Project]
📜 Tax-Exempt Status: This donation is made to a recognized tax-exempt religious organization.
✅ No goods or services were received in exchange for this donation.
🔢 Receipt Number: [Unique ID]
✍️ Authorized Signature: [Name / Position]3. Special Considerations for Non-Monetary Contributions
For in-kind donations, receipts should follow the same structure but without assigning a monetary value.
Example of Non-Monetary Donation Receipt:
📍 Local Spiritual Assembly of [City]
📅 Date of Donation: [MM/DD/YYYY]
👤 Donor Name: [John Doe]
🎁 Description of Contribution: One laptop, HP Model XYZ, in working condition
📜 Statement of Goods Received: No goods or services were provided in exchange for this donation.
🔢 Receipt Number: [Unique ID]
✍️ Authorized Signature: [Treasurer’s Name]4. Best Practices for Issuing & Storing Receipts
✅ Provide receipts promptly – preferably within 30 days of donation.
✅ Use digital acknowledgments (email receipts) for faster processing.
✅ Store receipts securely for at least 5-7 years for auditing and compliance.
✅ Offer annual summary statements for donors who give multiple times.Final Thoughts
Ensuring that every donation receipt includes the necessary details enhances financial transparency, compliance with tax laws, and trust within the Bahá’í community. By following these guidelines, institutions can effectively document contributions, acknowledge donors, and uphold ethical financial stewardship.
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Proper receipting is essential for maintaining transparency, ensuring compliance with legal and tax regulations, and upholding the spiritual integrity of fundraising activities. Whether you are hosting a fundraiser for the Bahá’í Fund or a general fundraising event, understanding the correct way to issue receipts helps safeguard both the donors and the institutions handling the funds.
Why Are Receipts Important?
✔ Transparency & Accountability – Clearly documenting contributions ensures proper tracking of funds.
✔ Compliance with Tax Regulations – Some contributions may be tax-deductible, while others require special handling.
✔ Confidentiality & Trust – Donor information must be kept secure and private.
✔ Proper Fund Allocation – Receipts help ensure funds are correctly directed to the intended purpose.Types of Contributions & Their Receipting Requirements
1. Contributions to the Bahá’í Fund
✅ Who Can Contribute? Only Bahá’ís may donate to the Bahá’í Fund.
✅ Where Should Funds Be Sent? Direct contributions through:The Online Contribution System (OCS) – Click here to contribute securely.
Local or National Treasurer – Funds should always be deposited in the name of the Bahá’í institution (e.g., Local Spiritual Assembly).
✅ Receipt Requirements:Name of the donor.
Date of the contribution.
Unique receipt number.
Name of the Bahá’í institution receiving the contribution.
Name(s) of the Bahá’í Fund(s) receiving the donation and amounts allocated to each.
Treasurer’s signature.
🚫 Non-Bahá’ís may not contribute to the Bahá’í Fund.
2. Receipts for Goods & Services Purchased at a Fundraiser (e.g., Auctions, Ticketed Events)
✅ Who Can Contribute? Only Bahá’ís may participate in Bahá’í Fundraisers.
✅ How Are Contributions Handled? When an item, ticket, or service is purchased at fair market value, the amount is not tax-deductible. However, if the donor pays above the fair market value, only the excess is tax-deductible.
✅ Receipt Requirements:Name of the donor.
Date of the event.
Description of goods or services purchased.
Fair market value (FMV) of the item.
Charitable contribution amount (total paid minus FMV).
🚫 Example: A dinner ticket is valued at $50, and the donor pays $100. The tax-deductible portion is $50.
3. In-Kind Contributions (Donated Goods & Services)
✅ Who Can Contribute? Both Bahá’ís and non-Bahá’ís may donate goods or services for a general fundraiser but not for the Bahá’í Fund.
✅ How Are Contributions Handled? The receipt must describe the item or service donated but not assign a dollar value (the donor must determine the value for tax purposes).
✅ Receipt Requirements:Name of the donor.
Date of the donation.
Description of the donated item/service.
No dollar value should be assigned.
🚫 Exceptions: If the donor provides a purchase receipt (e.g., a store receipt for event supplies), the treasurer may reference the purchase price.
4. Contributions Received for a Non-Bahá’í Fundraising Effort
✅ Who Can Contribute? Both Bahá’ís and non-Bahá’ís may donate to general fundraising efforts (e.g., a literacy project, humanitarian aid, or community development initiative).
✅ How Are Contributions Handled? Funds should be deposited into a separate project-specific account, not a Bahá’í Fund.
✅ Receipt Requirements:Name of the donor.
Date of contribution.
Purpose of the contribution.
Organization or project receiving the funds.
Treasurer’s signature.
🚫 Important: These funds must not be mixed with the Bahá’í Fund.
Handling Special Contribution Types
1. Stock & Securities Donations
✅ Contributions of stock should be received in the name of the Bahá’í institution and sold immediately.
✅ Receipt Requirements:Date the stock was received.
Number of shares received.
High, low, and closing price on the day of receipt.
2. High-Value Donations ($5,000 or More)
✅ If an in-kind donation is valued at $5,000+, the IRS requires additional documentation, including Form 8283 and an appraisal.
✅ Donors should refer to IRS guidelines for compliance.Best Practices for Managing Receipts
✔ Issue receipts promptly to all donors.
✔ Maintain records for transparency and reporting.
✔ Keep donor information confidential—do not publicly disclose contribution amounts.
✔ Ensure proper fund allocation—all contributions should be directed to their intended purpose.
✔ Encourage online contributions through OCS for secure and efficient transactions.FAQs on Receipting for Fundraisers
Q: Can I assign a dollar value to an in-kind donation on the receipt?
A: No. The receipt should describe the donated item or service, but it is the donor’s responsibility to determine its value for tax purposes.Q: How do I issue a receipt for an auction purchase?
A: The receipt must state:The item purchased.
The fair market value (FMV).
The amount paid.
The charitable contribution portion (if applicable).
Q: What if a donor requests confidentiality?
A: All donations should be handled with discretion. The donor’s name and contribution amount should never be disclosed publicly.Q: Can non-Bahá’ís receive a receipt for their contributions?
A: Non-Bahá’ís may only contribute to general fundraising efforts, not the Bahá’í Fund. If contributing to a humanitarian project, they may receive a receipt under the project’s name, not the Bahá’í Fund.Q: How do I handle online donations?
A: Encourage online giving through the Online Contribution System (OCS), which provides immediate digital receipts and secure processing.Final Thoughts
Proper receipting ensures trust, compliance, and accountability in all fundraising activities. Whether you are collecting funds for the Bahá’í Fund or a service initiative, following these guidelines will help maintain clarity, integrity, and transparency in your financial stewardship.
Need Further Guidance?
For additional support, contact your Local Spiritual Assembly, Regional Bahá’í Council, or the Office of the Treasurer.
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1. Can I host a fundraiser at a public venue?
Yes, a fundraiser for the Bahá’í Fund can be hosted in a public venue; however, there are important considerations:
Clearly communicate that only Bahá’ís may contribute to the Bahá’í Fund.
Maintain a spiritual atmosphere aligned with Bahá’í principles.
If the event involves non-Bahá’ís (e.g., at a public venue), ensure it is a general fundraising event rather than a fundraiser for the Bahá’í Fund.
Secure necessary permissions from venue management and comply with local regulations.
2. How can we ensure that donations remain voluntary and confidential?
Voluntary Giving: Contributions should be made out of love and devotion, without coercion, pressure, or competition. Avoid publicly announcing individual donation amounts.
Confidentiality:
Only those responsible for managing the funds (e.g., treasurer or event organizers) should have access to donor details.
Receipts should be issued privately.
If necessary, provide a discreet collection method (e.g., sealed envelopes, online donations).
Use the Online Contribution System (OCS): Encourage Bahá’ís to contribute directly through OCS for added confidentiality.
3. Can non-Bahá’ís participate in fundraising events?
For the Bahá’í Fund: No, only Bahá’ís may contribute to the Bahá’í Fund. However, non-Bahá’ís can attend the event (e.g., as guests or volunteers).
For General Fundraising: Yes, non-Bahá’ís may contribute to fundraising efforts that support service projects, humanitarian efforts, or educational initiatives that align with Bahá’í principles but are not contributions to the Bahá’í Fund.
4. Are there any restrictions on the type of fundraising activities allowed?
Yes. Fundraising activities should:
✅ Align with Bahá’í principles, ensuring dignity and sincerity in all aspects.
✅ Encourage a spirit of generosity rather than material competition.
✅ Maintain compliance with legal and tax regulations for charitable contributions.🚫 Not Permitted:
Commercial activities or product sales for personal profit.
Solicitation from non-Bahá’ís for the Bahá’í Fund.
High-pressure tactics or competitive giving challenges.
5. Who should I contact for guidance or approval?
Local Fundraiser: Consult your Local Spiritual Assembly for approval and guidance.
Regional/National Fundraiser: Reach out to the Regional Bahá’í Council or the Office of the Treasurer of the National Spiritual Assembly.
Legal & Tax Questions: For compliance with nonprofit and tax regulations, you may also refer to the IRS website (www.irs.gov) or a legal expert.
6. How do I submit collected funds?
For the Bahá’í Fund:
Online: Use the Online Contribution System (OCS) for direct and confidential contributions.
By Check: Contributions should be made payable to the Local, Regional, National, or Continental Bahá’í Fund, as applicable.
Through the Treasurer: Submit collected funds to the Local Spiritual Assembly Treasurer or designated Fund representative.
For General Fundraising:
Funds should be deposited into the appropriate project account and not mixed with Bahá’í Fund contributions.
Clearly track and document all transactions for transparency and accountability.
Contact us.
Phone: 847–733–3472
Text: 224-414-FUND (3863) and in the message box write “Bahaifund”.
Email: BahaiTreasurersOffice@usbnc.org
Mail: Bahá’í National Center
1233 Central Street
Evanston, IL 60201-1611