Below are some frequently asked questions about beginning a charitable program at UCP. Please feel free to Contact Us if you don't see a response to your particular question. Please also refer to our section on Frequently Asked Questions About Fiscal Sponsorship.
1. How much does the program application cost?
The application fee to begin an active charitable program or a donor-advised fund is $385. Please click here for more information, and to download the program application. For more information about donor-advised funds, and to download the application, please click here.
2. What are the ongoing costs?
UCP charges an 8% administration fee on each donation made to your program at UCP. Other charges may apply from time to time. You can review a list of additional fees that may be incurred.
3. How long does it take for approval of my Program or Donor-Advised Fund application?
We have a review committee review each application as they are submitted. We review your application for charitable purpose, clarity, and feasibility among other items. If the application is complete and legible (please only submit typed applications), and the charitable purpose is accepted by UCP, you should receive approval within 3-4 weeks. Otherwise, if we need additional information or clarification, we will give you a call.
4. Are donations to the program tax-deductible?
Yes, as long as the donor is receiving nothing of value in return (If a donor is paying for services, like a conference or a dinner, then the Fair Market Value of that item is not deductible). All donations must be sent to UCP for deposit. We will place these funds (minus our applicable fees) into an internally segregated account to be used to further your charitable purpose. DO NOT open your own local bank account. THIS IS PROHIBITED. You will be able to securely log in to our system to view your program account transactions online using an ID and password.
Once your program or donor-advised fund has been accepted at UCP, we will send you the applicable forms to use when recommending disbursement of funds from the UCP account.
5. Are gifts of services tax deductible?
The IRS rules on this are clear; the answer is "no." For example, if a surgeon who charges $5,000 for a heart valve replacement procedure donates his time to provide ten such procedures for needy patients without health insurance, he or she is not allowed any charitable deduction for the value of his time, even if there is an established "market" to substantiate value. This same rule applies to the time spent by an artist in providing services to or for a charity, or a hotel that donates a room for the night.
An artist is limited to deduction of the actual cost of the materials used to create a work of art, but only if the artist has not "expenses" (or "deducted") the cost of such materials. Most professional artists deduct as "overhead" the cost of raw materials, paint, supplies, etc. These are deducted under Code section 162 which allows a deduction for "ordinary and usual business expenses." There is no benefit to the artist in taking a Code section 170 charitable deduction if a Code section 162 business deduction is available. Although you should always check with your tax preparer for tax advice.
IRS Publication 526 provides a useful chart which summarizes what is and what is not deductible.
6. Can I open a local checking or bank account?
No, do NOT open a Local Checking Account or a Bank Account of any kind! Local checking and bank accounts bearing the name of a Program at UCP are not permitted. Please only use the Donation Deposit Form to send in donations to your Program at UCP.
Each gift, even though benefiting a specific Program at UCP, must be mailed by the Program Manager, using the Donation Deposit Form to United Charitable Programs at:
United Charitable Programs
6201 Leesburg Pike
Suite 405
Falls Church, Virginia 22044
... otherwise it will not be tax-deductible by the donor. Do not have donors send their donations directly to us at UCP. Checks may be made payable to the name of the Program. Do not endorse these checks. If you have collected cash, please send us a cashier's check or money order for the funds. The Program Director must use the Disbursement Request Form to request disbursements from the program account.
7. Do I have to do any filing, registering, etc.?
No. When you have a Program at UCP, we do all the paperwork. We file the IRS Form 990 annually that includes the activity of all our programs and donor-advised funds. You must, however, submit a Quarterly Activity Report (found on our Forms & Policies menu item) to UCP to tell us what you've been doing, both successfully and not so successfully.
8. Do all funds become the property of UCP?
Yes. There must be a "completed gift" to the charity in order to obtain any tax deduction. This means that all right title and interest in the donated property must pass to the charity. Therefore, UCP is in control of all donated funds.
9. Why does UCP exert full discretion and control over each program that it sponsors?
UCP is the entity that is legally responsible for all funds received on behalf of a sponsored program. We must ensure that the program uses the funds for charitable and educational purposes. This is accomplished through an application process, internal procedures regarding disbursements and grants, and a sponsorship agreement between UCP and the program to that details the specifics of the relationship. When a donor makes a contribution to UCP with a recommendation that this contribution be applied to your program, UCP monitors that their donations are properly used by your program. We also ensure that all tax-reporting requirements are met.
10. Once my program has been accepted by UCP as a fiscally sponsored program, have I become a nonprofit?
Being a fiscally sponsored program at UCP does not make the program an independent tax-exempt organization. Those who donate to your program at UCP gain the benefit of a charitable deduction for income tax purposes by donating to UCP, a section 501(c)(3) organization.
11. Do you assist with fundraising for my program?
No, UCP does not raise funds for your program. The Program Manager is responsible for soliciting the funds and grant monies to support the program. UCP is responsible for receiving and administering charitable contributions and grants on behalf of the program.
Also see Frequently Asked Questions About Fiscal Sponsorship.
Fill out an Application to Begin a Fiscally Sponsored Program and get started today, or contact us for more information.
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