Allowable Sources of Income
Sources of Funds (Cash Receipts) available to the chapter include (additional details below):
- Local Grants
- Cash and Cash-Equivalent Donations (Direct Donor Contributions)
- Sponsorships
- National Allocation or SCORE “Field Grants” (non-bank transactions)
- Other Federal Awards through HQ
- Funds in a Chapter Foundation Account within SCORE Foundation
- In-Kind and other Non-Cash Donations
- Other Federal Funding Sources
- Fees for Events
- Fees Workshops and Webinars
- Sponsorships for Workshops and Webinars
- Continuous Subscription Program Fundraisers (CEO Forums)
- Fundraising Events
Local Grants (E.g., Local/State Government, Foundation, etc.)
SCORE chapters may apply for and receive grants from local governments and other third parties. The SCORE chapter must notify the SCORE HQ accounting team of any financial reporting requirements associated with a received grant. The SCORE chapter or district associated with the grant will be responsible for any performance reporting requirements. SCORE chapters must notify the SCORE VP of Finance before applying for or receiving federal funds other than their normal Small Business Administration allocation. Please also remember that all contracts including grant agreements must be signed by the SCORE VP of Finance.
The chapter is responsible for managing the grant including ensuring compliance. Please work with the SCORE HQ controller for any reporting requirements to prevent “double dipping”, i.e. having expenses paid by both the federal grant and reimbursed by a local grant. Usually this is done using an Activity Code in the Sage Intacct Accounting system.
If the chapter is a “Subrecipient” of a federal grant from a passthrough arrangement, all financial filings need to be approved by SCORE HQ before submission in addition to the above requirements. The chapter will be responsible for absorbing any additional auditing costs incurred by SCORE directly due to the grant. All reporting required must be first reviewed and approved by HQ staff before submitting.
Cash and Cash-Equivalent Donations/ Direct Donor Contributions
SCORE Chapters may accept general cash donations which include, checks, ACH transfers etc. Donors must be recognized; however, any acknowledgement must adhere to the standards in the Sponsor Recognition/Acknowledgement section below.
See our Donations page for additional information.
Sponsorships
SCORE Chapters may solicit sponsorships to support specific events and projects. Any support from sponsors must be recognized, however any acknowledgement must also adhere to the standards in the Sponsor Recognition/Acknowledgement article. Chapters should notify the SCORE Vice President of Field Operations and their District Director before soliciting or accepting a gift of funds more than $10,000 from any one contributor in one year.
In accordance with IRS guidelines, SCORE may not sell advertisements to sponsors; however chapters may utilize SCORE publication mediums to recognize a sponsor’s contribution to another project. Unallowable advertising includes:
- Messages containing qualitative or comparative language, price information, or other indication of savings or value;
- Endorsements;
- Inducements to purchase, sell, or use products or services.
National Allocation and “Field Grants”
Chapters receive a budget of the federal award funds (Federal Grant) directly called the National Allocation. The amount allocated to each chapter is determined by SCORE HQ in coordination with field leadership. These are a part of the Sources of Funds for a chapter but are covered in more detail in Expenditures/Uses of Funds process since there is no actual receipt of cash by the chapter. “Field Grants” are federal award funds (Federal grant) allocated to a chapter or district for a specific project or purpose separate from normal operations. Chapters apply for “field grants” project by project following the timing and procedures set out at that time. Offsetting revenue is booked at month end close to recognize the Source of Funds for the chapter. No cash actually transfers between the chapter and HQ for these funds. Unused National Allocation or Field Grant funds at fiscal year-end are not carried forward to the next fiscal year due to federal award regulations.
In-kind Donations
SCORE chapters may also accept assistance or donated service from third-party organizations. An in-kind donation is when a third-party organization offers to provide services (e.g. marketing) to a chapter free of charge.
Other Federal Funding Sources
SCORE HQ may apply and be awarded other federal grants or funds in addition to the annual federal award through the cooperative agreement with the SBA. SCORE will track the financials of any new federal funding source independently from all other funding sources. All SCORE policies and procedures must continue to be followed for any new federal funding source including our polices on allowable costs. If a chapter is eligible to utilize an alternative federal funding source, they will be notified by SCORE, and SCORE will provide procedures specific to each grant that must be followed meticulously.
Not Allowed Sources of Income
Benefits for Payment and Advertising
While SCORE Chapters should recognize sponsors or donors, SCORE cannot provide any perceived substantial benefit to a sponsor or donor in return for their support. Chapters are not allowed to earn unrelated business income, which is income from a trade or business, that is not substantially related to the charitable, educational, or other purpose that is the basis of the organization’s exemption. This type of revenue would result in Unrelated Business Income Taxes (UBIT) for SCORE.
SCORE's sponsor recognition and acknowledgment standards are outlined below. Examples of not allowed activities include:
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selling space on an online directory;
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selling space on the chapter website;
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selling space in any publication or newsletter;
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providing a unique benefit to a sponsor that is not offered to other sponsors; and
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advertising a product in exchange for a sponsorship.
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