Introduction to FSPAC Association
The next 25 years of Romanian democracy start at FSPAC Fund Development Program (hereinafter referred to as FSPAC Fund Development Program) is administrated by an independent, nonpartisan nonprofit organization: FSPAC Association.
The College of Political, Administrative and Communication Sciences (further called “FSPAC”) established a nonprofit organization, in accordance with the Romanian law for non-governmental organizations (Government Ordinance no 26 from 2000): the Association of the College of Political, Administrative and Communication Sciences (further called “FSPAC Association”).
FSPAC Association’s goal is to support FSPAC’s programs and projects. According to FSPAC Association’s bylaws the main goal of the association is to support FSPAC’s projects and programs, which include academic research and inquiry and the dissemination of same in teaching and public service (FSPAC Association’s bylaws, art. 5). FSPAC Association’s Board is composed by FSPAC’s faculty, with no official position in FSPAC or conflict of interest in raising and assigning funds. FSPAC association is without power or discretion to devote or contribute with assets or income at any time to any person or persons, other than FSPAC or its successors. FSPAC Association is forever operated exclusively for the goal aforesaid.
FSPAC Association is an independent and nonpartisan nonprofit organization. This status legally guarantees that the association is entitled to raise money, manage money, and spend it on its own authority, and in accordance with the association’s mission and its donors’ wishes. FSPAC is not authorized to accept gifts or contributions or receive money or property for other than the association’s goal hereinbefore stated. Moreover, FSPAC is not organized for profit and it has not authority to issue capital stock, and no part of its net earning can be used to the benefit of any of the association’s members.
In relations with the donors, FSPAC Association and FSPAC will acknowledge, process and account for all contributions in a timely and accurate manner; to recognize donors in meaningful ways while respecting wishes of anonymity; and report to donors in a consistent and accurate manner on the use and impact of their financial contributions.
Legal aspects that guarantees the good stewardship of donors’ gifts
FSPAC is a state college and it is part of “Babeş-Bolyai” University (further called BBU), which is a state university, recognized as public institution by Romanian legislation.
FSPAC Association was established by FSPAC’s current leadership, respecting Romanian legislation referring to non-governmental organizations’ establishment (Government Ordinance no 26 from 2000). This legal status guarantees that FSPAC Association is an independent and nonpartisan organization; FSPAC Association has the legal power to raise money, manage and spend it on its own authority, as long as it follows the goal it was created for: to support FSPAC’s projects and programs. Thus, FSPAC Association’s activities are interdependent with FSPAC and BBU’s activities.
According to the Romanian legislation (GO 26/2000, art. 46) and FSPAC Association bylaws (art. 27), the association is entitled to raise money from members’ contributions, donors’ gifts, sponsorships, income-generating activities and from public institutions or private foundations. Moreover, FSPAC Association’s mission is to support FSPAC’s programs and projects and through its established activities the association provides financial resources to FSPAC’s projects and programs (FSPAC Association’s bylaws, art. 5). The Government Ordinance 26/2000 allows nonprofit organizations to follow missions for supporting public institutions, such as FSPAC is (OG 26/2000, art. 24, (4)).
FSPAC Association was legally established as a nonpartisan organization. The Government Ordinance 26/2000 covers only nonprofit organizations without political scope, thus the law excludes the political parties, and the unions, which establishment is covered by other laws. To ensure the nonpartisan status, the FSPAC Association’s board members cannot be members of political parties and they have the responsibility to guarantee that no political party could influence the association’s mission or activities.
The relationship between FSPAC and FSPAC Association
FSPAC Association and FSPAC signed an official agreement, through which FSPAC Association is responsible to acknowledge, process, and account for all the contributions made for any purpose, including the FSPAC Fund Development Program.
This general agreement establishes that FSPAC Association may transfer a portion of its assets to FSPAC through grant agreements. Annually, the FSPAC’s Dean presents to FSPAC Association’s Board of Trustees a list of projects for consideration, normally in descending priority order. FSPAC Association’s Trustees evaluate the requests and provide the grants according to the FSPAC’s priorities, and according to the spending policies and the spendable funds available. FSPAC Association’s Board of Trustees is composed by FSPAC faculty with no official position in FSPAC or conflict of interest in raising and assigning funds. The Chair of the Board is invited to take this position by the FSPAC’s Dean, and then the Chair is responsible for involving the other four members of the Board of Trustees. The Board of Trustees’ mission is to follow the association’s goal, while acknowledge, process and account for all donors’ contributions.
Each grant agreement includes at least the following information: the project for which the money is given (this should be in accordance with the Fund Development Program’s objectives), the amount of money given, the spending and the reporting rules, and person responsible for the project.
In assisting to finance FSPAC’s projects, FSPAC Association will respect donor directives in the receipt and expenditure of individual donors’ grants. In the case of unrestricted funds, FSPAC Association’s Board will consider FSPAC’s priorities in designating the projects the money will be used for, the amounts to be expended and the timing of spending.
FSPAC Association’s Board is also responsible to administer the FSPAC’s endowment fund. For this scope, FSPAC will sign a special agreement with FSPAC Association establishing the investment and the spending policies.
The general agreement and the grant agreements are the tools that will ensure that the money is spent in accordance with the donors’ wishes. The agreements will be written under and protected by the Romanian legislation, and once signed these ought to be implemented accordingly by all the signatory parties. In the agreements signed with FSPAC, FSPAC Association will act on behalf of its donors, fully respecting their wishes in regards to the gifts made.
Raising and managing gifts
FSPAC is responsible for the fundraising campaigns organized within the FSPAC Fund Development Program. FSPAC receives the necessary expertise on fundraising campaigns from Fundatia Danis pentru Dezvoltare Manageriala. The gifts received are handled by FSPAC Association respecting donors’ wishes. All donors receive gifts receipts for their donations, in accordance with the Romanian law (and in accordance with IRS requirements for the US citizens).
The gift receipts will include at least the following information: the donor’s name, the amount of cash contributed or the description of the property contributed, and if it is the case the description of the services or goods received in return for the donations. For property, artwork and other in-kind contributions, in the absence of an established fair market value or already set values, an appraisal is conducted in no more than 90 days of the gift date. Property, artwork or other in-kind contributions are excepted if these are needed for the association’s mission or if these can be sold / used to provide funds to further the association’s mission.
All donors’ gifts are recorded in the accounts of FSPAC Association, and these are restricted for specific projects or unrestricted, in accordance with donors’ solicitations.
FSPAC is not authorized to accept gifts or contributions or receive money or property for other than the association’s goal hereinbefore stated. Moreover, FSPAC does not accept gifts that compromise the integrity of the association or of FSPAC.
Accounting and auditing
FSPAC Association respects the Romanian accounting legislation (Bylaws, art. 28). The association records all the incomes and the expenses in accordance with the Romanian law (the Fiscal Code). All donors’ gifts are recorded in the accounts of FSPAC Association, and, to the extent that donor restrictions are in effect, spending of restricted gifts will be for the purposes donors choose to support.
FSPAC provides FSPAC Association all the necessary documents, accordingly to the Romanian accounting legislation, documents which prove the expenses were made in the projects financed by donors, through FSPAC Association.
Because of its legal status (nonprofit association), FSPAC Association undertakes the responsibility to be verified by a censor (a certified public accountant), who is allow to participate in the association’s board meetings and who is responsible to check the association’s internal controls, income and expenses and write the financial annual report of the association, according to generally accepted accounting principles.
FSPAC Association will contract an independent and external auditor which will audit the association’s incomes, expenses, investments. The auditor will provide an annual report in English language to be shared with relevant persons and organizations on the association’s sources of funds, uses of funds and compliance with donors’ wishes in regards to the use of gifts.
FSPAC Association with the help of FSPAC will write an annual report about the projects financed by donors through the FSPAC Fund Development Program. The report will be made public on the FSPAC Association’s website. At the same time, each donor will receive an annual report in regards to the money he/she gave and how this money was used during the year.
FSPAC Association and FSPAC are and will continue to be accountable to their constituents for how they perform with their donations. Donors cannot be expected to contribute to an institution that has not properly thanked them or kept them informed of the progress of their contributions. Each member of the association and from FSPAC’s staff, at some level, is a steward for each gift that comes into FSPAC and FSPAC Association’s trust.
The relation with one donor does not end when the gift is received or even at the donor’s death. For deceased donors, FSPAC and FSPAC Association will make every effort to find surviving family member or friend for whom stewardship should be performed on that donor’s behalf.