Fundraising and Financial Management Policy

Shadow Support Foundation (SSFon)

1. Purpose and Scope

This policy establishes the fundraising and financial management framework for Shadow Support Foundation (SSFon). It defines governance standards, donor rights, accounting practices, transparency requirements, and expenditure controls.

This policy applies to:

• All fundraising activities conducted by SSFon

• All financial transactions related to SSFon programs

• The Bhutanese Refugees of Eastern Nepal Program (Beldangi and Pathari–Sanischare camps)

• SSFon’s broader operations conducted in collaboration with partner agencies and supporters

2. Legal Status and Governance

• Shadow Support Foundation is a nonprofit organization incorporated in the State of Pennsylvania, United States, and recognized as a 501(c)(3) tax-exempt entity.

• SSFon operates in compliance with applicable U.S. federal and state laws, as well as relevant local laws in jurisdictions where programs are implemented.

• The fundraising initiative for Bhutanese refugees in eastern Nepal is a collaborative program. SSFon serves as the coordinating and fundraising entity, while beneficiary communities, partner agencies, and local collaborators retain ownership of on-the-ground implementation.

• All fundraising activities and expenditures must align with SSFon’s mission, bylaws, and approved policy framework.

3. Fundraising Framework

• Funds may be raised through donations, grants, and in-kind contributions received via SSFon’s authorized channels.

• Donors may contribute any amount without restriction, subject to applicable laws and donor intent.

• Donors retain the legal right to inquire about the use, management, and impact of donated funds, in accordance with SSFon’s donor rights and transparency commitments.

• All fundraising activities must be conducted ethically and transparently, avoiding misrepresentation, coercion, or misleading communications, and must reflect SSFon’s core values.

4. Donor Rights and Transparency

Shadow Support Foundation recognizes and upholds donor rights. Donors have the right to:

• Information regarding SSFon’s mission, programs, and governance structure.

• Clear explanations of how donations are utilized and the outcomes and impact achieved.

• Access to annual financial statements and program reports.

• Request information related to financial controls, audit status, and applicable organizational policies.

• Transparent accounting of funds allocated to specific programs (e.g., Bhutanese refugees in eastern Nepal), where applicable.

• Receive donation receipts and tax-related documentation, as required by law.

5. Bank Accounts and Financial Controls

• SSFon maintains separate bank accounts for fundraising and program-related funds.

• Bank account details (including account and routing numbers) must be securely stored and disclosed only through authorized and approved channels.

Financial Control Measures

SSFon maintains internal financial controls that include:

• Segregation of duties, ensuring that responsibilities for receiving donations, recording transactions, approving expenditures, and reconciling bank statements are separated among authorized personnel.

• Dual authorization for significant expenditures, disbursements, or contractual commitments.

• Regular bank reconciliations conducted and reviewed on a scheduled basis.

• Use of documented payment approvals, such as invoices, contracts, or purchase orders, prior to disbursement.

• Any third-party financial management arrangements (including vendors or local partners) must be governed by formal written agreements specifying scope of work, reporting requirements, and accountability standards.

6. Expenditure Policies and Disclosure

• All expenditures funded through donations must be consistent with approved program budgets and SSFon’s mission.

Typical Expenditure Categories

Expenditures may include, but are not limited to:

• Procurement of food items, packaging materials, and related services required for food basket distribution.

• Transportation and logistics necessary to deliver assistance within designated refugee camp areas.

• Administrative and operational costs directly supporting program implementation, including staff time, project management, monitoring, and evaluation.

Expenditure Documentation

Financial records must include:

• Itemized costs (unit prices, quantities, and total amounts).

• Vendor or supplier information and corresponding invoices or receipts.

• Date of expenditure and clearly stated purpose.

Public reporting will provide summarized expenditure information and program outcomes while ensuring confidentiality and dignity of beneficiaries.

7. Financial Reporting and Accountability

• SSFon commits to annual financial reporting in accordance with Generally Accepted Accounting Principles (GAAP) or other applicable nonprofit accounting standards.

• Financial reports may include:

  • Statement of Activities (income and expenses)

  • Statement of Financial Position (assets, liabilities, and net assets)

  • Cash Flow Statement and accompanying notes

• Donors and stakeholders may request financial statements and program reports. SSFon will provide accessible summaries and detailed reports as appropriate.

8. Independent Review and Audit

• SSFon will engage an independent auditor or conduct a formal external financial review at intervals required by law, regulation, or organizational policy.

• Audit findings and management responses will be:

  • Made publicly available when appropriate, or

  • Provided to donors and stakeholders upon request.

Policy Owner: Shadow Support Foundation
Approval Authority: Board of Directors / Executive Leadership
Effective Date: __________
Review Cycle: Annual or as required