2.306 Handling of Designated Funds
Policy Statement:
Lakeway Christian Schools (LCS) recognizes the importance of properly managing designated funds and student activity funds to ensure transparency, accountability, and alignment with both donor intent and the needs of student clubs and activities. This policy establishes the guiding principles and procedures for the administration, oversight, and use of these funds within LCS.
Definition of Designated Funds:
Designated funds are financial resources that have been provided to LCS with specific donor-imposed restrictions or designations regarding their use. These restrictions may specify how the funds should be used, the programs or initiatives they should support, or any other conditions outlined by the donor.
Acceptance of Designated Funds:
LCS may accept designated funds for specific projects or initiatives that align with the school's mission and values, provided that such funds meet the criteria for a large, meaningful project that is easy to track. The acceptance of designated funds shall be subject to a thorough review to ensure that the school can fulfill the donor's intent and comply with any restrictions or conditions.
Use of Designated Funds:
Designated funds shall be used exclusively for the purposes specified by the donor or in accordance with the restrictions imposed. LCS shall ensure that the use of designated funds complies with all legal and regulatory requirements. Any deviation from donor intent shall be subject to donor consent or legal approval.
Accounting and Reporting:
LCS shall maintain separate accounting records for designated funds to accurately track their receipts, expenditures, and balances. Financial statements and reports shall clearly distinguish between general funds, restricted funds, and student activity funds.
Student Activity Funds (Fund 22):
Student activity funds, also referred to as Fund 22, are accounts maintained for student clubs, organizations, or items not included in the annual appropriated budget. These funds function like individual bank accounts. Student clubs and organizations may not spend more than the available balance in their account. Prudent financial management must be exercised at all times to ensure that funds are used efficiently, responsibly, and in support of the intended purpose.
Donor Communication:
LCS shall maintain open and transparent communication with donors of designated funds, providing them with regular updates on the use and impact of their contributions in alignment with their intended purposes.
Fundraising for General Fund:
LCS encourages donors to contribute to the general fund, which supports the school's operational needs and provides flexibility in resource allocation. Fundraisers shall primarily aim to balance the general fund, which is unrestricted.
Review and Compliance:
This policy shall be reviewed regularly to ensure continued alignment with LCS's mission and goals. Compliance with this policy is essential to maintaining the trust and confidence of donors, stakeholders, and student clubs and organizations.
Lakeway Christian Schools (LCS) recognizes the importance of properly managing designated funds and student activity funds to ensure transparency, accountability, and alignment with both donor intent and the needs of student clubs and activities. This policy establishes the guiding principles and procedures for the administration, oversight, and use of these funds within LCS.
Definition of Designated Funds:
Designated funds are financial resources that have been provided to LCS with specific donor-imposed restrictions or designations regarding their use. These restrictions may specify how the funds should be used, the programs or initiatives they should support, or any other conditions outlined by the donor.
Acceptance of Designated Funds:
LCS may accept designated funds for specific projects or initiatives that align with the school's mission and values, provided that such funds meet the criteria for a large, meaningful project that is easy to track. The acceptance of designated funds shall be subject to a thorough review to ensure that the school can fulfill the donor's intent and comply with any restrictions or conditions.
Use of Designated Funds:
Designated funds shall be used exclusively for the purposes specified by the donor or in accordance with the restrictions imposed. LCS shall ensure that the use of designated funds complies with all legal and regulatory requirements. Any deviation from donor intent shall be subject to donor consent or legal approval.
Accounting and Reporting:
LCS shall maintain separate accounting records for designated funds to accurately track their receipts, expenditures, and balances. Financial statements and reports shall clearly distinguish between general funds, restricted funds, and student activity funds.
Student Activity Funds (Fund 22):
Student activity funds, also referred to as Fund 22, are accounts maintained for student clubs, organizations, or items not included in the annual appropriated budget. These funds function like individual bank accounts. Student clubs and organizations may not spend more than the available balance in their account. Prudent financial management must be exercised at all times to ensure that funds are used efficiently, responsibly, and in support of the intended purpose.
Donor Communication:
LCS shall maintain open and transparent communication with donors of designated funds, providing them with regular updates on the use and impact of their contributions in alignment with their intended purposes.
Fundraising for General Fund:
LCS encourages donors to contribute to the general fund, which supports the school's operational needs and provides flexibility in resource allocation. Fundraisers shall primarily aim to balance the general fund, which is unrestricted.
Review and Compliance:
This policy shall be reviewed regularly to ensure continued alignment with LCS's mission and goals. Compliance with this policy is essential to maintaining the trust and confidence of donors, stakeholders, and student clubs and organizations.