Accountable reimbursements
The below accountable reimbursement plan is expanded upon, operationally, on our Reimbursements page. We are required to have the below legalese on file. The below terms, “ordinary” and “necessary,” come directly from IRS Publication 535, last updated in 2022.
Eligible reimbursements
Board members, project committee members, volunteers, and employees, and some independent contractors (depending on whether an “Expenses” clause is included in their contract), may submit expenses for reimbursement.
In order to be reimbursable, expenses must:
- Ordinary: be common, reasonable, and accepted in the nonprofit industry
- Necessary: be helpful toward a Raft project and appropriate for accomplishing our overall mission
- Timely: be submitted within 60 days of when the expense was incurred
- Documented: include as documentation an itemized receipt showing when and where the expense was incurred
Excess reimbursement
Additionally, any excess reimbursement, for any reason, must be returned in a reasonable amount of time, no more than 120 days after receipt.
Mileage reimbursement
Mileage reimbursement is treated as a “non-accountable” expense. The full process for mileage compensation may be reviewed on our Driving page.
Amortization of annual expenses
We only amortize expenses that would amount to a monthly cost of $100 or more. All insurance payments, however, are amortized.1
Banking institutions and accounts
In order to minimize risk and maximize benefit, Raft Foundation Inc. utilizes only federally-insured banking and savings institutions. The amount on deposit with any one institution may not in the usual course of business exceed the FDIC-insured amount of the account, which is typically $250,000 per account type per institution but may be higher.
Capitalization
Raft Foundation Inc. capitalizes all fixed assets (i.e., long-term tangible items) with a per-unit cost greater than or equal to $2,500 and a useful life of at least two years.
Deposits
All income intended for Raft Foundation Inc. will be properly received, deposited, recorded, reconciled, and kept under adequate security. Although it does not typically handle or receive cash, any cash received must be promptly and fully deposited.
Donor restriction immateriality
Raft Foundation records all contributions in accordance with GAAP. However, for the purposes of tracking “Net Assets with Donor Restrictions,” the following materiality threshold exception shall apply:
- Tracking Threshold: Restricted contributions of less than $5,000 or less are considered quantitatively immaterial for separate tracking as restricted net assets, provided the restriction is satisfied within the same fiscal year.
- Policy: Donations under the threshold will be coded to the specific FSP project code but categorized as “Unrestricted” for parent-level reporting, as the project’s ongoing expenses are presumed to “release” these small amounts immediately. Any grant or donation exceeding the threshold must be formally coded as “With Donor Restriction” until the funds are fully expended.
- Fiscal Sponsorship Compliance: Note that this policy does not exempt the Organization from its fiduciary duty to track all funds by Project/FSP. All revenue, regardless of size, will continue to be coded to the appropriate Project/FSP class to ensure it is only spent on that project’s activities.
Executive director expense approval
Operationalized November 1, 2025
All reimbursements and non-payroll compensation submitted by Raft’s Executive Director (currently Nathan Hewitt) must be approved in Open Collective by the Treasurer.
Grants, gifts, and pledges
All grants and gifts will be properly received and recorded. Compliance with terms of any related restrictions will be monitored by staff and any concerns will be reported as needed to the Board of Directors. Pledges are recorded at the time they are made. Thank you letters are provided to donors in compliance with IRS regulations.
Footnotes
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Note that all endirsements to our policy for FSPs renew on the overall renewal date, not on the anniversary of the project endorsement. ↩