The Nuts and Bolts of KW Cares

2. The Nuts and Bolts of KW Cares An Operational Guide

3. Presenters Chris Streppa KW Cares Associate Executive Director Austin, Texas Mimi Hagan MCAngel and KW Cares Advisory Board Member Baton Rouge, Louisiana Rebecca Shanahan MCAngel and KW Approved Trainer Lowell, Massachusetts

4. Please complete an evaluation form found in the back of your program guide. The Nuts and Bolts of KW Cares

5. What Is KW Cares? Keller Williams Caring Associates Responding to Emergency Situations

6. KW Cares Trivia Where do you record your KW Cares Representative? On your Market Center’s White Page. Why is this important? A. It creates our KW Cares Rep Database.

7. KW Cares Trivia (cont.) How much did KW Cares receive in donations in 2012? $3,874,235

8. KW Cares Trivia (cont.) What is the primary source of KW Cares donations? Greensheetdonations! What should every Market Center’s goal be? A. To have 100 percent participation.

9. KW Cares Trivia (cont.) How often should the Market Center submit Greensheet donations? Monthly with transmittal. Why is it best to submit donations with transmittal? A. It’s easier and faster for everyone involved.

10. KW Cares Trivia (cont.) Why does it take so long for donations to appear on the intranet reports? (1) We receive an electronic file from IT after transmittal in order to import the donations into our database. (2) KW Finance must transfer the funds to KW Cares. (3) Before we post the donations, we must close out the month to ensure our accounts balance.

11. KW Cares Trivia (cont.) • Life cycle of a non-Greensheet donation check: • Mail is sorted and problem checks are pulled. Calls are made to MCA to resolve problems. • Checks are batched. • Checks are scanned for deposit to the bank. • Checks are entered into the donor database. • Donations are imported into accounting software. • Reports are generated and posted.

12. KW Cares Trivia (cont.) Where can I find KW Cares stories to share in my Market Center? The KW Cares website –www.kwcares.org KWConnect– testimonials and videos

13. KW Cares Trivia (cont.) Does KW Cares send out year-end statements? We send receipts by email on a monthly basis and not a year-end statement.

14. What Is Our Legal Status? KW Cares is a 501 (c)(3) public charity—a stand-alone legal entity. • Benefit: A 501 (c)(3) is federally authorized to receive tax-deductible donations, enabling donors to reduce their tax liability. This is a privilege that we have to protect.

15. Legal Implications (cont.) • A 501 (c)(3) must adhere to IRS regulations. • Charities must maintain 100 percent control over the donations received.

16. Legal Implications (cont.) • Grants awarded by KW Cares must be based on demonstrated financial need. • KW Cares can provide disaster or emergency assistance only after making an objective determination that the applicant is in financial need. • Grants are given if a person is unable to handle the situation on his/her own.

17. How Do We Define Our Scope? • Through Our Mission Statement • KW Cares is a 501 (c)(3) public charity created to support Keller Williams associates and their families with financial hardship as a result of a sudden emergency. • Hardship is defined as a difficult circumstance that a person or family cannot handle without outside help.

18. Market Center Relationship to KW Cares • What is the expectation of the Market Center in supporting KW Cares? • Each Market Center is asked to raise $30,000 annually for charitable giving. • 90 percent of that $30,000 should be to benefit your local community, and 10 percent is the annual goal for KW Cares. • If your Market Center raises more than $3,000 for KW Cares, all donations must be submitted in the year in which they were raised and not held over for the next year.

19. Market Center Relationship toKW Cares • How should these monies be managed? • Keep tax-deductible donations (for KW Cares or other charities) in liability accounts and separate from non-tax deductible monies used for local emergencies. • When raising money for a charity, work directly with that charity, as that organization will provide receipts for tax purposes. • Remember: Never deposit checks made out to KW Cares into a Market Center or any other account.

20. Market Center Relationship to KW Cares • What is the best way to reach the $3,000 goal? • 100 percent participation in Greensheetdonations. • The donation needs to be on the DA. • Title companies should send donation checks to the MCA for identification before being sent to KW Cares to ensure that agents receive a receipt. • Write the agent’s name on the check in the memo line. • In states where title companies send the check directly, the title company must be instructed to put the agent’s name on the check.

21. Fundraising • What are other ways to support KW Cares? • Conduct fundraisers! • Submit the KW Cares Fundraising Agreement. • Only approved fundraisers that benefit KW Cares 100 percent may bear the name “KW Cares” and display the KW Cares logo (trademark). • You must conduct the fundraiser according to KW Cares procedures and submit the reconciliation within 30 days.

22. Fundraising (cont.) • An event may have several elements that are subject to different rules for receipting. • In fact, an event may have several elements subject to different allowable levels of tax receipting and may require different disclosure statements. • Failure to furnish a disclosure statement for fundraising events may result in a federal penalty. • A disclosure statement should appear on all event promotional materials and tickets.

23. Fundraising (cont.) • $100 • $60 • $40 $40 -$20 $20 • If your tournament fee is $100 and the value of the green’s fee is $60, then the tax-deductible donation is $40. • If, at the same tournament, a dinner is included and the value of the dinner is $20, then the tax-deductible portion becomes $20. • Disclosure statement: The tax-deductible portion of the tournament fee is $20.

24. Fundraising (cont.) EXAMPLE: Golf Tournament w/Dinner and Auction If, at that same tournament, a Big Bertha driver is donated to the silent auction, the donor receives a receipt for donated goods for the donation of one golf club. Per IRS regulations, the value of the club is not indicated on the receipt.

25. Fundraising (cont.) EXAMPLE: Golf Tournament w/Dinner and Auction Value $200 Pay $100 Tax Ded. $0 Value $200 Pay $250 Tax Ded. $ 50 • If, at that same tournament, a player pays $100 for the Big Bertha valued at $200, that person has made a purchase of an item for less than its value and has not made a tax-deductible donation. • However, if the purchaser paid $250 for Bertha, he/she would be entitled to a receipt for a tax-deductible donation in the amount of $50.

26. Fundraising (cont.) • Why is this important? • Accountability to the IRS. These different scenarios have to be properly receipted and accounted for in your event reconciliation. KW Cares must have a balanced reconciliation for each KW Cares-sponsored fundraiser. • We are ALL responsible to demonstrate to the IRS that donations are properly collected, recorded, and receipted, and that funds raised in the name of KW Cares reach the KW Cares bank account in Austin.

27. Fundraising (cont.) When a nonprofit organization has a fundraising event, it must maintain records to show that funds have been handled properly. This is true for all KW Cares-endorsed fundraisers. This Excel Workbook* must be used to record sponsorships, donations, proceeds, and expenses. Keeping track of fundraiser elements from the beginning makes the final reconciliation easy. *Download from www.kwcares.org.

28. Market Center Relationship to KW Cares • Does our Market Center fund = KW Cares? • No. The 501 (c)(3) charity with the benefits and responsibilities of a nonprofit is only in Austin. Your local fund is held by a for-profit entity. • Donation checks for your local fund or for local fundraisers should not be made out to KW Cares and are not tax-deductible donations. • You should have a Culture Committee and a KW Cares Representative; however you may not call your local fund “KW Cares.” If you do, please rename your fund ASAP!

29. Market Center Relationship to KW Cares • How is money raised for local funds used? • To provide a quick response to associates’ emergencies. • To assist members of the community in need. • To support local or other charities. • IMPORTANT: Donations to a Market Center’s local fund are not tax deductible.

30. Processing KW Cares Donations Before donations can be made to KW Cares through a Greensheet, the associate must sign an Authorization Form*, which should be kept in his/her file in the Market Center. *Download from www.kwcares.org.

31. Processing KW Cares Donations (cont.) • WinMORE • There is a dedicated KW Cares deduction line. • KW Cares donations will be included in the “pay to KW Amount” and be included in transmittal. • Fundraising events will be handled manually by submitting the event reconciliation and proceed check(s) to KW Cares by mail.

32. Processing KW Cares Donations (cont.) Dedicated KW Cares deduction

33. Processing KW Cares Donations (cont.) Deduction can be adjusted on the DA

34. Processing KW Cares Donations (cont.) Profit Share calculation

35. Processing KW Cares Donations (cont.) • Benefit – Time Savings • WinMORE deposit places the donations in the liability account for KW Cares. • The Profit Share Calculation Report shows total KW Cares DA donations for the month. • MCA adds KW Cares as a line item on the monthly invoice. • KWRI drafts these deductions with the rest of the Market Center fees.

36. Processing KW Cares Donations (cont.) Do not transmit donations AND send a check from the Market Center. This doubles the donations and defeats the purpose of submitting donations with transmittal. Also, the duplicated donations will have to be reversed from our system.

37. Culture Committee • Your Culture Committee supports the Market Center’s culture by: • Overseeing Market Center fundraising efforts for the annual $3,000 goal. • Assisting eligible KW associates with the KW Cares grant application process. • Handling all of the Market Center’s non-KW Cares related charitable activities, including fundraising for individuals in need within the Market Center or the local community. • Conducting fundraising efforts for charities other than KW Cares.

38. Culture Committee (cont.) • Establishing and maintaining a Market Center’s local emergency fund in order to provide monetary assistance to individuals in need within the Market Center or the local community. • Providing care, comfort, and nonmonetary support to those in need in the Market Center or the local community in the spirit of family taking care of family.

39. Culture Committee (cont.) • Please remember . . . • These local emergency funds must not be used for Market Center operating expenses. • Unless a Market Center has established its own separate 501(c)(3) entity for the local emergency fund, donations to this fund are not tax deductible and donors do not receive receipts for tax purposes. • Funds raised for specific individuals are not tax deductible.

40. Culture Committee (cont.) • The Chair of the Culture Committee is a member of the ALC. • The Chair of the Culture Committee may also serve as the Market Center's KW Cares Representative or may appoint another member of the committee to serve as the KW Cares Representative. • The Culture Committee shall provide recommendations to the ALC for the disbursement of funds collected for the Market Center’s local emergency fund.

41. KW Cares Representative Make sure the name of your KW Cares Rep is on your Market Center’s White Page. This serves as our database for reps.

42. Culture – How Can You Help? • So what’s it all about? It’s about living the wonderful Keller Williams culture by finding and serving the higher purpose of business through charitable giving in the Market Centers and communities where our associates live and work.

43. Culture – How Can You Help? (cont.) • Grants • KW Cares provides assistance through grants. • How can you help? • Be our eyes and ears to identify KW associates in need. • Encourage them to seek assistance. • Encourage them to call KW Cares. • Help them through the grant application process. • Ensure that the Market center Community has provided an adequate degree of financial support before turning to KW Cares for a grant.

44. Culture – How Can You Help? (cont.) • Grants • Keep all grant information confidential. • Once the grant is finalized, destroy all copies (electronic and hard copies). The personal rewards are tremendous, and so are the benefits to your colleagues in need.

45. Contact Us We love to talk about KW Cares! Website: www.kwcares.org Email: kwcares@kw.com Phone: 512-306-6727 Fax: 435-514-2229 Facebook: facebook.com/kwrealtycares Thanks for supporting KW Cares!

46. Thank you for attending! Please complete an evaluation form found in the back of your program guide. The Nuts and Bolts of KW Cares