General Donation Information
Donations to the Unitarian Universalist Congregation of Whidbey Island
To state the obvious, donations are essential if the UUCWI is to function effectively.
Donations come in several forms and the money is channeled to several uses.
Types of donations:
- CASH: this is the simplest source of funds and most commonly arrives in the collection basket on a Sunday. Cash donations will be used for the General Fund or as a Dedicated Offering. The destination is determined by when the cash is received.
- CHECKS: the overwhelming majority of the UUCWI’s funding arrives as checks. Generally, checks are placed in the collection basket on a Sunday or sent to the UUCWI in the mail. Some members have made arrangements for checks to be routinely sent by mail to the UUCWI from their bank or investment company.
- ON-LINE DONATIONS: this is new to the UUCWI, with the money donated through a dedicated function on our web site. At the time of the on-line donation, the donor must specify the use for the funds. These donations cost the UUCWI about 3% as a processing fee.
- TRANSFERS from other financial entities: also a relatively new option, these transfers may come from banks or investment companies directly to the UUCWI, either directly into our checking account or as a check. This option, along with donations of stocks, may provide a useful tax savings for some people, particularly since for many of us, donations made by the member may not gain a tax deduction in the current tax environment with high standard deductions. Please work with the Treasurer to make arrangements for this type of donation.
- STOCKS AND OTHER EQUITY: some donations are made to the UUCWI in the form of the donation of stocks or other financial assets. This requires a specific mechanism to send the value to our brokerage account from the member’s investment account. Once received, the donation is converted to cash as soon as possible. Please work with the Treasurer to make arrangements for this type of donation.
Uses of donations
- General Fund: this is the operating account for the UUCWI and the money here is used for most of our expenses: salaries and employee benefits, utilities, supplies, insurance, maintenance, etc.
- Pledge Payments: pledge payments are credited against the member’s pledge commitment and the money flows into the General Fund. It is important to designate donations that are pledge payments (usually by writing a note on the check) so that proper crediting can be done.
- Dedicated Offerings: from time to time the UUCWI collects donations that will be forwarded to another organization as part of our social service mission. Again, it is important to designate the destination for the money so that it is properly accounted for and used.
- Endowment Fund: these donations go to a special separate Endowment Fund that will be held in reserve for either financial emergencies or for special project use. Use of these funds is subject to significant approval requirements. It is not used for day-to-day operations.
- Mortgage Retirement Fund: donations can be designated to be used to pay down the mortgage. If so designated, the money is paid against the mortgage at the next monthly mortgage payment.