CVI˛ Policies

P001

May 25, 2007

Policy about Policies

P002

May 28, 2007 

Conflicts of Interest

P003

July 15, 2007

Privacy

P004

June 28, 2007

Involvement in Political and Lobbying Activities

P005

January 23, 2008

Receipt Disbursement
P006 November 30, 2007 Associate Compensation Schedule & Means
P007 February 15, 2008 Specific Assistance to Individuals
P008 September 22, 2008 Associate Reporting
P009 January 4, 2011 Disbursements of Project Funds and Associate Compensation
P010December 6, 2011Disbursements of Contributions to Service Projects of USA Tax Return Filers
P011December 12, 2011Disbursements of Contributions for Personal Compensation

Policy P001: Policy about Policies, revised May 25, 2007

Policies are decisions made by directors about questions and practices that require action. Policies are not rules but statements that guide directors' and associates' responses to issues.

Article 1. CVI˛ Policies intend to:

•  Express good and credible stewardship.

•  Provide guidance to directors and associates.

•  Enable directors to treat associates justly and consistently.

•  Redeem time by addressing key issues only once.

•  Facilitate smooth, consistent and impartial operation.

•  Show to government, contributors, potential applicants and others that CVI˛ operates in credible, just, thoughtful and wise ways.

Article 2. Process

1.   Any adviser, director, director designate or associate may propose a policy or policy revision.

2.   Directors make needed and useful policies that facilitate fulfillment of the agency's charter.

3.   The director-appointed chairman coordinates directors in writing proposed policies that are concise, reasonable and helpful.

4.   After advisers review and comment on proposed policies, directors finalize them and their chairman communicates them to associates.

5.   Directors can agree to change a policy at any time.

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Policy P002: Conflicts of Interest , revised May 28, 2007

Article 1. PURPOSE
The purpose of this conflicts of interest policy is to protect the interests of Community Vision International (CVI˛’s) when it enters into a transaction or arrangement that might benefit the private interest of an insider or associate contractor. Additionally, this policy purposes to:

•  express CVI˛’s high standard of integrity;

•  identify the activities in which CVI˛ must restrict its participation, and to what degree;

•  state the activities from which CVI˛ must refrain.

 This policy supplements, but does not replace, applicable state laws governing conflicts of interest applicable to nonprofit charitable and educational corporations.

Article 2. DEFINITIONS

•  Insider—a person who holds a personal and private interest in the activities of the organization, e.g., founder(s), advisers, directors, officers, and designates. 

•  Independent contractor—a worker who has the right to control or direct the means and methods of accomplishing a result when the employer has the right to control/direct the result.

•  Inurement—the doctrine that prohibits a tax-exempt organization from engaging in any activities which will permit any of the organization’s income or assets to unreasonably or unduly benefit a person who has some close relationships to the organization (i.e., an insider).

•  Compensation—includes direct or indirect remuneration as well as gifts or favors that are substantial in nature.

•  Substantial—measured by one of two tests:  the substantial part test, which looks at time and expenditures devoted; or the expenditure test, an objective mathematical test of expenditures relative to the organization’s size.

Article 3. POLICY STATEMENTS

1.  Interest—CVI˛ shall serve a public interest, not private one(s). Therefore:

•  CVI˛ must neither operate for the benefit of private interests (such as those of its insiders, their families, its benefactors, associates, or persons controlled by such interests) nor allow more than an insubstantial accrual of benefits, including non-monetary benefits, to insiders, individuals or organizations.

•  The majority of CVI˛’s Board of Directors will be non-salaried and will not be related to salaried personnel or to parties providing services. In addition, salaried individuals can not vote on their own compensation, and compensation decisions will be made by the Board.

•  Directors and officers may, however, be reimbursed by the corporation for officer-approved and reported out-of-pocket expenses (e.g., materials, meals, room rental, travel, etc.) and officer-approved operating expenses (e.g., Internet services, resources, training, computing equipment, software, etc.) associated with officer activities.

•  Directors and officers who also serve as independent contractors (associates) on officer-approved programs and projects (non-board and non-officer activities) can be compensated as independent contractors for their time devoted to such programs and projects. The basis for their compensation, however, will be the same as for all associates, i.e. a predetermined maximum per year per region, applicable to all associates in the region, and pro-rated according to time devoted to officer-approved programs and projects within the region.

2.  Purposes

•  CVI˛ must not have purposes that are illegal or violate fundamental public policy.

•  CVI˛ must not operate for the primary purpose of conducting a trade or business that is not related to its exempt purpose.

3.  Use—CVI˛ shall not be used for the private benefit of any individual or other entity.

4.  Earnings—CVI˛ must ensure that no part of its net earnings inure to the benefit of any of its insiders, to anyone within its network of contractor associates, or to any private person. 

•  Prohibited inurement includes payments, unreasonable compensation, and the transfer of property for less than fair market values, and income or assets that accrue to insiders. 

•  Prohibited inurement does not include reasonable payments for services rendered, payments that further tax-exempt purposes, or payments made for the fair market value of real or personal property. 

5.  Activities—A substantial portion of CVI˛’s activities must further its exempt purpose(s). Therefore: 

•  CVI˛ must not conduct activities that are illegal or violate fundamental public policy.

•  CVI˛ must refrain from participating in the political campaigns of candidates for local, state or federal office.

•  CVI˛ must restrict its lobbying activities to an insubstantial part of its total activities.

6. Controls—CVI˛ shall implement the following internal controls and recordkeeping to help prevent private benefit and inurement: 

•  Segregated financial duties, e.g., inflow-related duties from outflow-related duties and complete recordkeeping with multiple comparisons and cross-checks (administrative tasks);

•  Director-defined or approved list of administrative tasks;

•  Second signature by a director on checks exceeding $5000;

•  Tracking of all assets, such as equipment and furniture (CVI˛ does not invest or own any buildings or other property);

•  Quarterly and annual monitoring of programs:  goals, progress, needs, receipts, expenses;

•  Monthly financial statements (reports) that contain a balance sheet, profit and loss overview, and profit and loss detail, i.e., CVI˛ and program incomes and CVI˛ and program expenses;

•  Annual financial statements, showing all inflows, their sources, and outflows, net profit or loss, and all program expenses.

•  Annual 990 tax returns to the Internal Revenue Service, CT-12 and 990 tax returns to the Department of Justice in Portland, Oregon, and reports to the State of Oregon in Salem.

•  Permanent records of CVI˛’s application for recognition of exempt status, the determination letter recognizing exempt status, and organizing documents, such as articles of incorporation and by-laws, with amendments.

•  Temporary Records (four-years minimum) of CVI˛’s supporting documents, i.e.: contributions, purchases, sales, grant applications, sales slips, paid bills, invoices, receipts, deposit slips, canceled checks, etc., kept in an orderly fashion and in a safe place.

•  Annual internal audit of CVI˛’s activities by one or more directors to ensure that proper policies are in place to implement internal controls.

Article 4. PROCEDURES

1.   Duty to Disclose—in connection with any actual or possible conflicts of interest, an interested person must be given an opportunity to disclose all material facts to the directors considering the proposed transaction or arrangement.

2.   Determining Whether a Conflict of Interest Exists—after disclosure of the financial interest and all material facts, and after any discussion with the interested person, he/she shall leave the Board discussion while a determination of conflict of interest is discussed and voted upon (decided) by the remaining Board (of directors) members.

3.   Addressing Conflicts of Interest—After exercising due diligence, the Board shall determine whether CVI˛ can obtain a more advantageous transaction or arrangement with reasonable efforts from a person or entity that would not give rise to a conflict of interest. If unable to do this, the Board shall determine by majority vote of the disinterested directors whether the transaction or arrangement is in CVI˛’s best interest and for its own benefit and whether the transaction is fair and reasonable to CVI˛, and shall make its decision as to whether to enter into the transaction or arrangement in conformity with such determination.

4.   Responding to Violations of the Conflicts of Interest Policy—If the Board has reasonable cause to believe that a member has failed to disclose actual or possible conflicts of interest, it shall inform the member of the basis for such belief and afford the member an opportunity to explain the alleged failure to disclose. If after hearing the response of the member and making such further investigation as may be warranted in the circumstances, the Board determines that the member has in fact failed to disclose an actual or possible conflict of interest, it shall take appropriate disciplinary and corrective action.

Article 5. RECORDS OF PROCEEDINGS 

The minutes of the Board shall contain:  the names of the persons who disclosed or otherwise were found to have financial interest in connection with an actual or possible conflict of interest; the nature of the financial interest; any action taken to determine whether a conflict of interest was present; the Board’s decision as to whether a conflict of interest in fact existed; the names of the persons who were present for discussions and votes relating to the transaction or arrangement; the content of the discussion, including any alternatives to proposed transaction or arrangement; and a record of any votes taken in connection therewith. 

Article 6. REVIEWS, STATEMENTS & COMMENTS  

This policy, its amendments and CVI˛’s annual financial statements shall be distributed to CVI˛‘s insiders for annual review and comment. Each review shall, at a minimum, evaluate whether compensation arrangements and benefits are reasonable and the result of arm’s-length bargaining. The Board shall evaluate all comments received. If a reviewer makes no comments, that fact shall mean that the reviewer understands and agrees to comply with these documents. These documents shall also be placed on CVI˛’s website for CVI˛ associates and the public.

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Policy P003: Privacy, revised  July 15, 2007

Article 1: PURPOSE

The purpose of this privacy policy is two-fold:

•  To protect the interests of those who contribute to Community Vision International (CVI˛);

•  To protect the interests of those who visit CVI˛’s website.

Article 2: DEFINITIONS

•  Contributor list—names, addresses and other data about individuals, businesses, churches, foundations and other entities that contribute financially or materially to CVI˛ for its operations, and through CVI˛ to its independent contractor associates and their programs or projects.

•  CVI˛ associate—a person or couple that serves with CVI˛ as an independent contractor.

•  CVI˛ associate’s designate—a person named by an associate to receive specified, confidential information about that associate’s CVI˛ contributor list.

•  CVI˛ website—http://www.CVI˛.org and its ancillary pages.

Article 3:POLICY STATEMENTS

1.   CVI˛ will not give, sell or trade its contributor list to any person, business or other entity.

2.   CVI˛’s contributor list must be kept confidential, known only to CVI˛-designated persons who process contributions, write receipts, keep records, and prepare government-required forms.

3.   CVI˛ may provide to a CVI˛ associate and their designate their contributor list and reports of their receipts, but shall not provide the same information to other associates.

4.   CVI˛ will never sell, rent, swap or authorize any third party to use anyone's e-mail address, except as specifically authorized or in the good faith belief that such action is reasonably and necessary to comply with the law or legal process. Nor will we disclose any personally identifying information unless authorized to do so.

5.   CVI˛ directors may retain and copy between them, documents and e-mail messages containing questions and complaints received from outside CVI˛, including names and dates, as well as answers to questions and resolutions of complaints.

Article 4: PROCEDURES

1.   Contributors and associates who feel that their contribution information has been compromised by CVI˛ personnel or procedures are invited to inquire about the matter and provide details at directors@CVI˛.org.

2.   CVI˛ directors shall investigate each complaint of compromised contribution information, and implement resolutions (if needed).

3.   CVI˛ directors shall evaluate expressed concerns about CVI˛’s website and e-mail privacy, and respond in a timely manner.

Article 5: RECORDS

CVI˛ directors’ e-mail and files may contain descriptions and resolutions of complaints, including names and dates.

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Policy P004: Involvement in Political and Lobbying Activities, revised June 28, 2007

Article 1: PURPOSE

The purposes of this policy on involvement in political and lobbying activities policy are:

•  To help ensure that Community Vision International’s (CVI˛’s) activities further its exempt purposes everywhere and not political or substantial lobbying (legislative) purposes anywhere;

•  Not to jeopardize CVI˛’s tax-exempt status under section 501(c)(3); and

•  Not to subject CVI˛ and itsmanagers to an excise tax for making forbidden political expenditures.

Article 2: DEFINITIONS

Political activities—direct or indirect participation in, or intervening in, any political campaign on behalf of (or in opposition to) any candidate for elective local, state, or federal public office; contributing to political campaign funds or public statements of position (verbal or written) made on behalf of the organization in favor of or in opposition to any candidate for public office.

Legislative activities—action by Congress, any state legislature, any local council, or similar governing body, with respect to acts, bills, resolutions, or similar items, or by the public in referendum, ballot initiative, constitutional amendment, or similar procedure. It does not include actions by executive, judicial, or administrative bodies.

Lobbying activities—any attempts to influence legislation.

Substantial—measured by one of two tests: the substantial part test, which looks at time and expenditures devoted; or the expenditure test, an objective mathematical test of expenditures relative to the organization’s size.

Non-prohibited political activities—voter education activities (e.g. presentation of public forums and publication of voter education guides, if conducted in a non-biased and non-partisan manner; encouragement of people to participate in the electoral process (e.g., voter registration and get-out-the vote drives), if conducted in a non-biased and non-partisan manner; directors and officers speaking for themselves, as individuals, providing they clearly indicate that their comments are personal and not intended to represent the views of CVI˛; inviting a political candidate to speak in a non-candidate capacity, providing nothing is communicated by CVI˛ or the speaker about her or his candidacy or the election, and providing no campaign activity occurs in connection with the candidate’s attendance.

Article 3: POLICY STATEMENTS

1.  CVI˛ must absolutely and everywhere refrain from political activities.

2.  CVI˛ associates (independent contractors) must refrain from representing CVI˛ in political or lobbying activities, regardless of world location.

3.  CVI˛ associates (independent contractors) must refrain from using CVI˛-approved program or project funds in political or lobbying activities, regardless of world location.

4.  CVI˛ will not invite a political candidate to speak as a political candidate at any of its events.

5.  CVI˛ will neither initiate, nor authorize, nor become involved in, nor support programs and projects that promote the political campaigns of candidates for local, state, or federal office.

6.  CVI˛ will restrict its lobbying activities, if any, to an insubstantial part of its total activities.

Article 4: PROCEDURES

1.  Duty to Disclose—In connection with any actual or possible involvement in political or substantial lobbying, an interested person must be given an opportunity to disclose all material facts to the Board of directors considering the proposed involvement.

2.  Determining Whether Inappropriate Involvement Exists—After disclosure of the involvement and of all material facts, and after any Board discussion with any interested person, that person shall leave the Board discussion while a determination of involvement is discussed and decided by the Board members.

3.   Addressing Inappropriate Involvement—If the Board has reasonable cause to believe that a member or officer or contracting associate has violated this policy, then it shall inform the person(s) of the basis for such belief and afford them an opportunity to explain the alleged violation. If after hearing the response of the person(s) and making such further investigation as may be warranted in the circumstances, the Board determines that the person(s) has in fact violated this policy, it shall take appropriate disciplinary and corrective action.

Article 5: RECORDS

The minutes of the Board shall contain the names of the persons who disclosed or otherwise were found to have become involved in actual or possible political or substantial lobbying activities; the nature of the involvement; any action taken to determine whether involvement occurred; the Board’s decision as to whether involvement in fact existed; the names of the persons who were present for discussions relating to the involvement; the content of the discussion; and a record of any votes taken in connection therewith.

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Policy P005: Receipt Disbursement, January 23, 2008

Article 1:  PURPOSE

The purpose of this Receipt Disbursement policy is to clarify how and when CVI˛ disburses its receipts, including rationales for compensating contracted associates and for paying operation costs.

Article 2:  BACKGROUND

•  This policy is based on who and what CVI˛ is, as defined by CVI˛’s charter, giving special attention to its legal purpose (Bylaws, Article III), to its service orientation, to its low-cost style, and to its compensation rules (Bylaws, Article V, Sections 1 and 10; Article VI, Section 6; Article VIII).

•  CVI˛’s years of operation reveal a stable standard, expressed as a percentage of total annual receipts, by which contracted associates can be compensated and operating expenses paid.

•  By law, CVI˛ may not pay salaries to the majority of the Board of Directors or to salaried personnel or parties who provide services. Currently, CVI˛ directors contribute their services.

Article 3:  POLICY STATEMENTS

1. CVI˛ endeavors never to operate with a deficit or unneeded excess.

2. CVI˛ aims to always disburse at least 95% of all receipts to board-approved and associate-managed programs and projects, as advised by contributors.

3. CVI˛‘s 5% administration fee is to be disbursed as follows:
•  2.5% to administrative services.
•  1.9% to office equipment and operations (operations includes postage & shipping, admin supplies, internet, website domains, licenses, taxes, bank charges, telephone)
•  0.5% to preparation of government documents.
•  0.1% to website maintenance.

Article 4:  PROCEDURES

1.  Disbursements to board-approved, associate-managed programs and projects and for website maintenance shall be made monthly, as defined by CVI˛’s policy Associate Compensation Schedule.

2.  Disbursements for equipment and operations shall be made when needed to ensure uninterrupted operations and to avoid debt.

3.  Disbursements for the preparation of government documents shall be made twice annually:  at completion of associates’ 1099s, and later at completion of government documents.

Article 5:  EXCEPTIONS

CVI˛ directors may, as they deem necessary to pay expenses and maintain stable operation, adjust disbursement percentages and update this policy.

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Policy P006: Associate Compensation Schedule, November 30, 2007

Article 1: PURPOSE

The purpose of this Associate Compensation Schedule policy is to clarify when CVI˛ disburses compensation to its independent contractor associates. Additionally, this policy purposes to help:

1.  Minimize administration costs;

2.  Ensure associates’ administration fees benefit all associates more equally, and not benefit disproportionately those associates who want more administrative services than others.

Article 2: POLICY STATEMENT

The associate compensation schedule, effective January 1, 2008, will be by monthly disbursement only, with compensation being sent by postal mail within the first week after the prior month’s end.

Article 3: COMMENTS

CVI˛’s low-percentage administrative fee remains modest compared to percentages charged by some service organizations. To remain orderly and efficient, service organizations typically disburse compensation on a given and regular schedule, and not when their payees want payments. Multiple disbursements per month for an associate require excessive administrative time that other associates’ fees must subsidize, which is inequitable.

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Policy P007: Specific Assistance to Individuals, revised February 25, 2010

Article 1:  PURPOSE

The purpose of this Specific Assistance to Individuals policy is to clarify CVI˛’s practice relative to receiving contributions for individuals and providing specific assistance to them. Additionally, this policy purposes to clarify the procedures by which contributors can contribute through CVI˛ to the specific needs of individuals.

The current revision of this policy purposes to clarify how contributors can contribute to:

•  The medical needs of CVI˛ associates and their dependents.
•  The relief needs of CVI2 associates’ and their dependents.
•  The rehabilitation needs of CVI2 associates and their dependents.

Article 2:  DEFINITIONS

•  Specific assistance for medical needs includes:  payment to, or for the benefit of, particular clients or patients, including payment to a hospital to cover the medical expenses of a particular individual; and medical, dental, and hospital fees and charges.

•  Specific assistance for medical needs does not include:  grants to other organizations that select the person(s) to receive the assistance available through the use of the grant funds, such as a contribution to a hospital to provide some service to the general public or to unspecified charity patients.

• Specific assistance for relief needs includes: emergency food, medicine or accommodation during or immediately following a natural disaster or act of war.

• Specific assistance for relief needs does not include:  non-emergency food, medicine or accommodation.

• Specific assistance for rehabilitation needs includes:  physical therapy not covered by specific assistance for medical needs.

• Specific assistance for rehabilitation needs does not include:  psychological therapy or physical therapy covered by specific assistance for medical needs.

Article 3:  POLICY STATEMENTS

1. CVI˛ receives and disburses contributions to provide specific medical, relief and rehabilitationassistance to individuals, as defined in Article 2.

Article 4:  PROCEDURES

1. CVI˛ directors will receive, review and possibly approve requests to provide specific assistance to individuals.

2. CVI˛ will assign program codes to director-approved requests to provide specific assistance.

3. CVI˛ administration will provide interested contributors with a ‘CVI˛ contribution designation card,’ noting the assigned program code.

4. CVI˛ will receive contributions into its ‘Specific Assistance for Individuals’ account, and disburse contributions from the same.

5. After receiving ‘specific assistance’ contributions, CVI˛ will automatically provide contributors with appropriate program coded ‘specific assistance’ contribution designation cards.

6. Contributors may change their contribution schedules as they wish, or change the contribution amounts by so marking their designation cards.

7. CVI˛ associates who receive specific assistance contributions will also receive a monthly accounting of these contributions, including the names of the contributors, unless the contributors prefer to remain anonymous.

8. All who receive specific assistance contributions must ensure that the contributed amounts are applied to their designated, specific, individual needs.

9. CVI˛ will report to the IRS all funds received and disbursed to provide specific assistance to individuals.

Article 5:  STATEMENTS & COMMENTS

1. ‘Specific assistance’ contributions received by CVI˛ will be tax-deductible by contributors.

2. ‘Specific assistance’ contributions disbursed by CVI˛ to CVI˛’s independent contractor associates should generally be reported to the IRS as income; associates should check with their accountants or attorneys for clarification of their specific situations.

3. ‘Specific assistance’ contributions are typically disbursed per CVI˛’s Associate Compensation Schedule policy, P005.

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Policy P008: Associate Reporting, September 22, 2008

Article 1:  PURPOSE

The purpose of this Reporting Policy is to state CVI˛ associates’ reporting responsibilities to CVI˛, a government-declared, nonprofit, public-benefit Corporation, and to each other.

Additionally, this policy:

•  enables CVI˛ to maintain its tax-exempt status; to fulfill its commitments to governing national and state authorities; not to jeopardize associates’ programs, projects and compensation; and to assure associates’ benefactors of CVI˛ oversight and associate accountability.

•  obligates CVI˛ associates to periodically evaluate and plan their services; to provide CVI˛ with information that it needs to prepare government-required reports; and to inform CVI˛ of service progress, struggles, needs and ideas for accountability, assistance and encouragement.

Article 2:  DEFINITIONS

•  CVI˛’s charter—CVI˛’s mandate, values, mission, vision, style, outcomes, activities and faith.

•  Active CVI˛ associate—an associate who holds all associate rights (e.g., non-profit cover, fund processing, network participation, accountability, etc.) and responsibilities (e.g., to uphold CVI˛’s charter; to provide CVI˛ with annual service goals; and to report quarterly to CVI˛).

•  Inactive CVI˛ associate—an associate who holds the right to network participation only (no non-profit cover, no fund processing, no accountability) and no responsibilities (e.g., to uphold CVI˛’s charter; to provide CVI˛ with annual service goals; and to report quarterly to CVI˛).

Article 3:  POLICY STATEMENTS

1.  Active CVI˛ associates are to provide CVI˛ with quarterly service reports by: 

•  April 15th for the period January through March;
•  July 15th for the period April through June;
•  October 15th for the period July through September;
•  January 15th for the period October through December.

Reports shall be in the format provided at http://www.cvi2.org/docs/associate_quarterly_report_template.html. Other formats, such as letters to contributors and blogs do not enable CVI˛ and its associates as described in Article 1 above.

2.  Active CVI˛ associates shall provide CVI˛ with an annual service report by January 15th for the prior year. Annual reports shall be made in the Excel or Word template that CVI˛ sends to each associate in December.

3.  Contributions received by CVI˛ during July for active associates who did not report for the period January through June will be held at CVI˛ until July 31st. If those associates still have not submitted a report by July 31st, then they will be moved to inactive status, and their receipts will be returned to their contributors.

Contributions received by CVI˛ during January for active associates who did not report for the period July through December will be held at CVI˛ until January 31st. If those associates still have not submitted a report by January 31st, then they will be moved to inactive status, and their receipts will be returned to their contributors.

Exceptions to statement 3 above will be provided to active associates who do not receive any contributions; or who live outside N. America and neither write English nor have free access to an English translator; or who cannot send e-mail reports due to age, disability, inadequate training, lack of computer equipment or access to the Internet; or who simply do not have adequate time or resources to report due to their travels into remote or restricted regions wherein they serve for long hours or periods.

4.  Active CVI˛ associates who do not provide CVI˛ with an annual service report by January 15th for the year prior will automatically become inactive associates on January 31st of the same year, unless technological reasons prevented generation or reception of the report.

Article 4:  PROCEDURES

1.  Active associates’ quarterly reports, which are sent to all CVI˛ associates, shall serve as reminders to active associates to report regularly. No further notification by CVI˛ shall be deemed necessary.

2.  Contributors to active associates who do not report by July 31st for the period January through June will be notified during August of the associates’ failure to enable CVI˛ to legally and responsibly perform its duty for the associates and their benefactors.

3.  Contributors to active associates who do not report by January 31st for the period July through December will be notified during February of the associates’ failure to enable CVI˛ to legally and responsibly perform its duty for the associates and their benefactors.

Article 5:  RECORDS OF PROCEEDINGS

CVI˛ directors’ e-mail communications and CVI˛’s letters to contributors shall document associates whose status was changed from active to inactive.

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Policy P009: Disbursements of Project Funds and Associate Compensation, revised January 4, 2011

Article 1: Purpose

The purposes for this policy are to:

•  Define important terms related to CVI˛ fund disbursements;
•  Clarify CVI˛’s USA government-recognized, public nonprofit funding categories;
•  State and describe CVI˛’s disbursement methods for its funding categories;
•  Clarify tasks, responsibilities and procedures in the CVI˛ fund disbursement process.
•  Specify the kinds of entities to which CVI˛ will disburse funds;
•  Facilitate CVI˛ accounting and associate tracking of disbursements;
•  Standardize CVI˛’s disbursement methods for efficiency.

Article 2: Definitions

Note: the following are government categories—followed by CVI˛-specific definitions.

Program service—the main service provided to CVI˛ by a contractor associate.

Project service—a discreet CVI˛-approved, contractor-managed service within a CVI˛-approved program service.

Personal account—a bank or credit union account, under a family name and/or Social Security number, from which an associate draws funds for personal or family income or support. Any associate may also pay, from this account, expenses associated with their contracted CVI˛ program service, including expenses that a USA citizen or legal USA resident alien may deduct on 1040 Schedule C.

Business account—a bank or credit union account, under a program name or registered business name and a USA tax identification number, from which a USA citizen or legal USA resident alien associate draws funds to pay for expenses associated with their contracted CVI˛ program service, including expenses that such associates may deduct on 1040 Schedule C, etc. These associates may also pay, from this account, their personal or family salaries.

Program or project account—a bank or credit union account, under a program or project name and a USA tax identification number) from which an associate disburses project-related funds that are not for their personal or family income or support, but are solely for specific CVI˛-approved assistance or granted project expenses.

Individuals in the USA—CVI˛ associates who are USA citizens or legal USA resident aliens and who live inside the USA.

Individuals outside the USA—All CVI˛ associates who live outside the USA.

American contractors—CVI˛ associates who are USA citizens or legal USA resident aliens and who live anywhere.

Non-American contractors—All CVI˛ associates who are neither USA citizens nor legal USA resident aliens, and who live outside the USA.

USA organizations—entities created or organized in the USA or under USA laws.

Foreign organizations—entities not created or organized in the USA or under USA laws.

Article 3: Policy Statements

CVI˛ disburses funds to its independent contractor associates’ bank or credit union accounts for the following USA government-recognized expense categories

1.  Program or project services provided by CVI˛-compensated American contractors.
For this category, funds are disbursed to associates’ personal or business accounts. These funds are subject to 1099 reporting. Associates must report these funds as personal or business income, and may deduct legitimate service expenses on their 1040 Schedule C.

2.  Program or project services provided by CVI˛-compensated non-American contractors.
For this category, funds are disbursed to associates’ personal accounts. These funds are not subject to 1099 reporting unless their recipients file an American tax return.

3.  Specific Assistance to Individuals.
This category, defined by CVI˛ policy P007, helps to pay medical, relief and/or rehabilitation expenses of CVI˛ associates and their dependents. For this category, funds are received into CVI˛ project P100SATI and are disbursed to associates’ business or project accounts. These funds are not subject to 1099 reporting because they are used solely and entirely to pay expenses incurred by CVI˛-approved, specific assistance projects.

4.  Granted projects to help pay medical, relief, rehabilitation, and other CVI˛-approved service expenses of:

a) USA organizations (can also be governments).

b) Individuals in the USA.

c) Individuals outside the USA and foreign organizations (can also be governments).

For category 4 (a) & (b), funds are disbursed to associates’ business or project accounts.

For category 4 (c), funds are disbursed to associates’ personal accounts.

These funds are not subject to 1099 reporting because they are used solely and entirely to pay expenses incurred by CVI˛-approved service projects.

Notes:

•  Programs or projects may be funded through some combination of the above funding categories.

•  Income appearing on CVI˛-issued 1099s eventually qualifies and funds USA citizen or legal USA resident alien associates for government benefits, including Social Security, Medicare, Disability, Medicaid, etc.

 Article 4: Procedures

1.  CVI˛ receives funds from contributors, and accounts for and disburses funds to associates as described in Article 3.

2.  CVI˛ associates receive CVI˛-disbursed funds in the ways described in Article 3.

3.  To receive CVI˛-disbursed project funds, associates who live outside the USA must establish one or more ways to transfer funds from their USA account(s) to their countries of service. To do so, they may need to enlist a knowledgeable, responsible and trustworthy American.

4.  To gain advice regarding international fund transfers, CVI˛ associates may consult fellow-associates or the directors who may be able to advise you from their own experience.

5.  CVI˛ associates are responsible to manage CVI˛-approved projects to accomplish their goals, and to account for all income received from CVI˛ and for project expenses.

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Policy P010: Disbursements of Contributions to Service Projects of USA Tax Return Filers

Article 1: Purpose

This policy clarifies how CVI˛ disburses contributions to the CVI˛-approved service projects of its independent contractor associates who file USA tax returns.

Article 2: Definitions

Service project—a contractor-managed service within a CVI˛-approved program service.

Personal bank account—a bank or credit union account, under a family name and Social Security number, from which an associate:

(a) draws funds for personal or family income or support.

(b) may also pay expenses associated with their contracted CVI˛ program service, including expenses that a USA citizen or legal USA resident alien may deduct on 1040 Schedule C.

Business account—a bank or credit union account, under a CVI˛ program name or registered business name and a USA Employer Identification Number (EIN), from which a USA citizen or legal USA resident alien associate:

(a) draws funds to pay for expenses associated with their contracted CVI˛ program service, including expenses that such associates may deduct on 1040 Schedule C, etc.

(b) may also pay, from this account, their personal or family salaries that they report separately if they file a USA tax return.

Program or project account—a bank or credit union account, under a program or project name and a USA Employer Identification Number (EIN), from which an associate disburses project-related funds that are not for their personal or family income or support, but are solely for CVI˛-approved project expenses.

Article 3: Policy Statements

Contributions received by CVI˛ for a CVI˛ associate’s approved service project (not for their personal compensation) will normally be disbursed to the associate’s project or business bank account (not for deposit in personal bank account) within thirty-one days (during the first week of each month). These disbursements, to be used only for service project expenses, will appear on CVI2 Accounting’s monthly reports, but will not appear on annual 1099-MISCs to the service project manager and the IRS.

In the event that a CVI˛ associate (the service project manager) has specified no such project or business bank account, CVI˛ will disburse the designated service project funds for deposit in the service project manager’s personal bank account within thirty-one days (during the first week of each month). These disbursements, to be used only for service project expenses, will appear on CVI˛ Accounting’s monthly reports and annual 1099-MISCs to the service project manager and the IRS.

Article 4: Procedures

1. CVI˛ receives funds from contributors, accounts for them and disburses them to associates as described in Article 3.

2. CVI˛ associates manage CVI˛-approved projects to accomplish their goals.

3. CVI˛ associates remain responsible to account for all income received from CVI˛, including project expenses.

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Policy P011: Disbursements of Contributions for Personal Compensation

Article 1: Purpose

This policy clarifies how CVI˛ disburses and reports contributions intended for the personal compensation of its independent-contractor associates.

Article 2: Definitions

Personal compensation—funds contributed to CVI˛ that are designated for disbursement to a CVI2 independent-contractor associate for personal or family income or support. The associate may also pay, from these funds, expenses associate with their contracted CVI2 program service, including expenses that a USA citizen or legal USA resident alien may deduct on a 1040 Schedule C.

Personal bank account—a bank or credit union account, under a family name and Social Security number, from which an associate:

(a) draws funds for personal or family income or support.

(b) may also pay expenses associated with their contracted CVI˛ program service, including expenses that a USA citizen or legal USA resident alien may deduct on 1040 Schedule C.

Article 3: Policy Statements

When both husband and wife are CVI2 associates:
 
a) And a contribution is designated for only one of them, then:
1) CVI2 will disburse those funds in the manner requested by the associate, either directly to the associate (USA only) or to the personal USA bank account that the associate previously designated;

2) For USA tax return filers, CVI2 will include the amount disbursed in its annual 1099-MISC to that associate and to the IRS.
 
b) And a contribution is designated for both of them, then:
1) CVI2 will disburse one-half those funds to each of them in the manner requested by them, either directly to them (USA only) or to the personal USA bank account that those associates previously designated;

2) For USA tax return filers, CVI2 will include one-half the total amount disbursed in its annual 1099-MISC to each associate and to the IRS, effectively splitting the disbursed contribution between spouses.
 
When only a husband or a wife is a CVI2 associate:
 
a)   And a contribution is designated for that associate, then:
1)   CVI2 will disburse those funds in the manner requested by that associate, either directly to that associate (USA only) or to the personal USA bank account that the associate previously designated.
2) For USA tax return filers, CVI2 will include the amount disbursed in its annual 1099-MISC to that associate and to the IRS.
 
b)   And a contribution is designated for both that associate and their spouse, then:
1)   CVI2 will disburse those funds in the manner requested by the associate, either directly to the associate (USA only) or to the personal USA bank account that the associate previously designated.
2) For USA tax return filers, CVI2 will include the amount disbursed in its annual 1099-MISC to the associate and to the IRS.
 
c) And a contribution is designated only for the associate's non-associate spouse, then CVI2 will return the contribution to its sender.

Article 4: Procedures

1. CVI˛ receives funds from contributors, accounts for them and disburses them to associates as described in Article 3.

2. CVI2 normally disburses contributions and monthly receipt and disbursement reports within thirty-one days (during the first week of each month).

3. CVI˛ associates manage personal compensation in order to live, serve and accomplish their service goals.

4. CVI˛ associates remain responsible to account for all income received from CVI˛, including personal compensation and project expenses.

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