Office of Origin: Finance

Responsibility: Chief Financial Officer

Original Date Adopted: 3/24/26

Dates Reviewed: 3/24/26

Last Date Board Approved: 3/24/26

This policy provides expectations for employee fundraising activities conducted on behalf of Lake Michigan College (the College). The College maintains a formal fundraising arm, the Lake Michigan College Foundation (the Foundation), which is responsible for the solicitation, acceptance, and stewardship of all charitable gifts to the College. This policy ensures that all fundraising done by employees aligns with the Foundation’s processes, protects donor relationships, complies with legal and ethical requirements, and avoids confusion or conflicting solicitations.

This policy applies to all employees, departments, programs, student groups advised by employees, and any individual acting in an official College capacity. It governs all fundraising activities, including solicitation of donations, sponsorships, advertisements, and in-kind contributions.

Use of the College’s or Foundation’s name, logo, or branding in any fundraising materials, solicitations, or promotions must be approved by the Foundation or the College’s Marketing Department, and must be in accordance with the College Brand Identity policy.

Fundraising activities for personal projects (such as a child’s fundraiser) must be approved in advance by the supervisor.

Fundraising

Fundraising includes any activity in which an employee or department solicits or receives money, goods, services, sponsorships, or advertising revenue from external individuals or organizations for the benefit of the College, its programs, or its students.

Charitable Gifts

A charitable gift (or “gift”) is a voluntary contribution made to support the College, its programs, or its students, for which no goods, services, recognition, or other

direct or indirect benefits are expected in return. All charitable gifts must follow the Foundation’s gift acceptance, receipting, and accounting processes. Gifts may not be accepted directly by employees or departments. All charitable gifts must be processed, and received through the Foundation, including cash, sponsorships, in-kind contributions, and restricted gifts. The Foundation is responsible for approving, accepting, and receipting all gifts.

Sponsorships and Advertising Revenue

Sponsorships and advertising revenue are not charitable gifts and are treated as exchange transactions because they involve the provision of goods, services, or other benefits to the sponsor or advertiser. Although they are not charitable gifts, these activities are considered fundraising and are included within the scope of this policy. These activities are discussed in a separate section below.

Employee-Led Fundraising

Employees or departments outside of the Foundation wishing to solicit funds, sponsorships, or advertising revenue must obtain advance approval from both their supervising Cabinet member, the Chief Financial Officer (CFO), and the Foundation. This requirement applies to activities such as:

• selling advertisement space in programs or publications
• seeking sponsorships for events, performances, competitions, or departmental initiatives
• soliciting goods or services for raffles, auctions, or giveaways
• requesting financial contributions from community partners, businesses, alumni, or individuals

Before any external party is contacted, employees must coordinate with the Foundation to:

• confirm whether the prospect is already being solicited or stewarded by the Foundation
• ensure messaging and purpose are consistent with institutional priorities
• avoid conflicting or duplicative outreach
• determine whether the activity constitutes a charitable gift or a business transaction
• discuss naming rights, recognition, or donor benefits

Departments may submit an annual fundraising plan for review. Once approved, the department may proceed under the terms of that plan, subject to ongoing oversight by the Foundation, Finance, and Marketing.

Employee Participation and Compensation

Fundraising activities may not create substantial new operational or administrative duties for employees beyond their regular job responsibilities, nor may they rely on additional uncompensated labor. Activities requiring significant administrative effort, cash handling, event staffing, or ongoing management may not be approved. Fundraising may not be structured in a way that creates expectations of stipends, additional compensation, or release time. Activities requiring meaningful operational labor must be redesigned to minimize employee involvement, reassigned to the appropriate College unit, or discontinued.

Employees are not expected to assume primary responsibility for ongoing or complex fundraising, advertising, or sponsorship activities unless it is part of an employee’s job description/job duties; barring that, employees may not be responsible for:

• designing, producing, or managing advertising or sponsorship packages
• tracking sales, sponsorship commitments, or receivables
• maintaining financial accounts or records related to revenue activity
• staffing or supervising concession-style or revenue-generating operations
• collecting or handling cash outside the College cash-handling policy
• performing fundraising functions

Limited, occasional assistance (such as helping at a concession stand, supporting a single event, or creating a one-time promotional item) may be appropriate when it does not create significant additional workload or ongoing responsibility, and there is no expectation of additional compensation or release time.

Before approval, proposed fundraising activities that are not part of an employee’s job description/job duties must be reviewed with Human Resources, to assess whether the:

• operational workload can reasonably be supported with existing job roles
• activity could create expectations of additional compensation, stipends, or release time
• activity should instead be managed by the Foundation or another appropriate College unit.

Activities that cannot be reasonably supported without sustained or substantial employee time may not be approved.

Unless approved in advance by the CFO and done in accordance with the Cash Handling policy, employees may not personally collect, store, deposit, or distribute funds unless it is part of their job description/job duties.

Advertising and Sponsorship Revenue

Employees must obtain advance approval from both the Foundation and the CFO before soliciting, negotiating, or accepting any form of advertising, sponsorship, or promotional support from external individuals or organizations.

Activities such as selling advertisement space in programs, brochures, programs, publications, or digital materials may constitute business revenue rather than charitable giving. Because IRS rules differentiate between charitable contributions and advertising income, the Foundation and CFO will determine the appropriate classification before any solicitation occurs.

Departments may not establish their own pricing, sponsorship packages, recognition benefits, or advertising terms. If the activity is approved, all rates, benefit levels, terms, and agreements must be reviewed and approved by the CFO and Marketing prior to use.

All funds received through approved advertising or sponsorship activities must be routed through established College accounts using processes designated by Finance. Finance must invoice and record advertising and sponsorship transactions.

Approved advertising and sponsorship revenue may be used to support program expenses when approved by the CFO. Revenue may not be maintained informally at the department level or outside of established financial controls.

Student-Run Activities

Fundraising activities conducted primarily by students, with minimal employee involvement, may be approved under separate student fundraising processes. Employee responsibilities must remain advisory, not operational.

References: 

Advertising, Marketing, and Sponsorships policy

Advertising on College Property policy

Cash Handling policy College Brand Identity policy