Frequently Asked Questions – FAQs
Welcome to Urban Tilth’s FAQ page, where we strive to provide clarity and insight into our mission, programs, and impact.
Whether you’re curious about our urban agriculture initiatives, volunteer opportunities, or how to get involved in community projects, you’ll find answers to your questions here. Explore the diverse topics we cover and discover how Urban Tilth is cultivating healthier, more sustainable communities.
Funding
How is Urban Tilth funded?
Urban Tilth receives financial support from:
- Individual donations: Contributions from community members, supporters, and philanthropic individuals.
- Grants: Funding from government agencies, foundations, and other grant-making organizations to support specific programs or initiatives.
- Corporate sponsorships: Support from businesses and corporations interested in investing in community development and sustainability efforts.
- Fundraising events: Revenue generated from events, such as galas, fundraisers, or community gatherings.
- Earned income: Revenue generated from the sale of products, services, or educational programs Urban Tilth offers.
Anonymous Donors
Why do some donors ask to keep their donations anonymous?
Donors may choose to keep their donations anonymous for various reasons, including:
- Privacy: Some donors prefer to keep their charitable giving private and avoid unwanted solicitations or attention.
- Humility: Others may prefer to give without seeking recognition or praise for their generosity.
- Personal Reasons: There could be personal or professional reasons why a donor prefers not to have their name associated with a particular cause or organization.
- Avoiding Bias: Anonymity can help prevent biases or expectations from affecting relationships between donors and recipients.
Are anonymous donors anonymous to Urban Tilth?
- We track and know all direct donations to Urban Tilth, even if the donor prefers to remain anonymous to the public. However, donations received through investment firms or donor-advised funds (DAFs) are anonymous to Urban Tilth but are recorded by the respective investment firm or DAF. It’s important to note that these fully anonymous contributions make up less than 2% of Urban Tilth’s funding.
Are anonymous donors anonymous to the IRS?
- No, donations over $500 are reported to the IRS by any organization, donor-advised fund (DAF), or investment firm receiving them. However, Urban Tilth does not need to report donations under $500 to the IRS. Nevertheless, we track these smaller donations from the donor to the organization and through expenditure for our annual external audit.
Restricted Funds vs Unrestricted Funds
What is a restricted fund?
- A restricted fund is a specific pool of money set aside by a nonprofit organization for a designated purpose or project, as specified by the donor or grantor. Donors may place restrictions on their contributions to ensure that the funds are used for a particular program, activity, or expense outlined in the donor agreement. Nonprofits are legally obligated to use restricted funds only for the intended purpose specified by the donor.
Are all fiscally sponsored projects restricted funds?
- As per auditors’ requirements, all funds received for fiscal sponsorship projects are restricted by their nature as they are explicitly meant to support the fiscally sponsored project’s programs and operations.
- However, these funds can also be classified as unrestricted for use by the project if the donor does not explicitly state which program the funds must support or if the donor grants permission for the project to allocate them for any purpose. Regardless of their designation, these funds will appear as “restricted” in Urban Tilth’s books.
What is an unrestricted fund?
- An unrestricted fund is a pool of money within a nonprofit organization that is not subject to donor-imposed restrictions.
- The organization can use these funds for any purpose supporting its mission and programs, as determined by its leadership and governing board.
- Unlike restricted funds, unrestricted funds provide flexibility to the organization to address its most pressing needs, cover operating expenses, and pursue strategic opportunities without limitations imposed by donors.
- Individual donors who give to an organization often give unrestricted funds.
- Foundations can make grants to organizations that are ‘general operating grants’ or ‘unrestricted grants.’ These types of grants can be used to fund any project or expense needed to fulfill the nonprofit organization’s mission.
Capital Campaigns
What is a Capital Campaign?
- A capital campaign is a focused fundraising effort undertaken by a nonprofit organization to raise significant funds for specific capital projects or initiatives. These campaigns typically aim to finance major projects such as constructing or renovating buildings, acquiring land, purchasing equipment, or expanding facilities. Capital campaigns often have defined financial goals and timelines and involve soliciting donations from various sources, including individuals, foundations, corporations, and government grants.
- Current examples of Urban Tilth Capital Campaigns and Projects include:
- North Richmond Farm Project: This initiative involves raising funds to develop or improve a farm in the North Richmond area, potentially for agricultural production, educational programs, community events, or other related purposes.
- ADA Garden project: This campaign is for an ADA-accessible garden at Unity Park. This campaign seeks funds to design and construct a garden space that is fully accessible to individuals with disabilities, ensuring inclusivity and equal access to gardening activities.
- Verde Garden Renovation: This campaign involves raising funds to refurbish and enhance the garden’s infrastructure, amenities, or programming to better serve the community.
Who is funding our Capital Campaigns ?
- Our capital projects are funded by over 60+ foundations, major donors, government grants and hundreds of smaller individual donors.
- Click here to see our North Richmond Farm Capital Campaign Donor Thank You page.
Annual Non-Profit External Audits
What is an annual non-profit external audit?
- The State of California requires annual external audits for ALL nonprofits generating over $2M in annual revenue. This is an automatic compliance requirement triggered by revenue; it is not a punitive measure. These audits help ensure transparency, accountability, and trustworthiness, essential for maintaining donor confidence and fulfilling fiduciary responsibilities.
- Nonprofits who receive government grants may also choose to do an external audit to ensure they comply with accounting best practices.
- You can find Urban Tilth’s past audit reports here.
Fiscal Sponsorship
What is fiscal sponsorship?
- Fiscal sponsorship is a relationship in which a nonprofit organization, known as the fiscal sponsor, provides financial and administrative support to another organization, typically one that has not yet obtained its own tax-exempt status. The fiscal sponsor assumes legal and financial responsibility for the sponsored project or entity, allowing it to receive tax-deductible donations and grants as if it were a nonprofit itself.
What is Urban Tilth’s approach to fiscal sponsorship?
- Supporting Organization Growth: We actively support the growth and development of sponsored organizations, providing guidance and resources to help them achieve their missions.
- Introducing to Funders: We facilitate connections with potential funders, helping sponsored organizations secure the financial support they need to thrive.
- Helping to Cover Shortfalls: In times of financial need, we assist sponsored organizations by helping to cover shortfalls, ensuring they can continue their vital work without interruption.
- Partnering on Projects: We collaborate with sponsored organizations on projects, leveraging our collective expertise and resources to achieve shared goals.
- Uplifting Projects’ Work: We promote the work of our fiscal sponsorship projects through our social media channels and speaking engagements, amplifying their impact and visibility within the community.
Which organizations are currently fiscally sponsored by Urban Tilth?
- You can find an updated list of our current fiscally sponsored projects here.