What is the PFD Charitable Contributions Program?

The program was created by the Alaska State Legislature in 2008 and allows Alaskans filing for their PFD on-line to donate all or part of it to the campuses of the University of Alaska, community foundations, and eligible charitable and educational organizations. After a three-year pilot project, Pick.Click.Give. is now a permanent part of the PFD program.

What is the purpose of the program?

The program provides an easy and reliable vehicle for Alaskans to support eligible nonprofit organizations. The program goal is to increase individual charitable giving along with the number of donors to nonprofit organizations. The program provides an additional way for donors to support organizations they care about.

How does the program work?

The program is available to Alaskans who file on-line for their PFD. The on-line application will have a list of eligible organizations, and people will be able to choose those to which they want to contribute. Individuals will be able to direct from $25 to the full dividend to eligible nonprofits.

Can donors change the amount of their charitable contributions to a specific nonprofit organization, or add an organization after they have filed?

Yes.  Go to the Department of Revenue PFD website at http://www.pfd.state.ak.us/  on the right side of the screen it reads: "Access your 2012 electronic application".

Click this link to add or change Charitable Pledges.  After you log in the page will allow you to search for organizations and add donations..

Can donors withdraw their contribution selections after they make an on-line application?

Yes.  If donors e-signed their application, they can withdraw from all selections or select individual organizations to withdraw.  If they did not e-sign, a Charitable Contributions Withdrawal form is available on the PFD Division website.  The deadline to withdraw is August 31.  The PFD Division is unable to retrieve donated funds after that date.

Who implements and administers the law?

While the Alaska Department of Revenue has the ultimate responsibility for implementing the law, several other organizations assist.

• United Way of Anchorage (www.liveunitedanchorage.org) qualifies eligible organizations under the provisions of the law and disburses the donations to the organizations chosen by the donor.
• The Foraker Group (www.forakergroup.org) manages outreach to the Alaska nonprofit community, including support via phone, internet, mail, email and training sessions.
• The Rasmuson Foundation (www.rasmuson.org), along with a host of private and institutional funders, promotes a statewide media and communications campaign that encourages Alaskans to give through Pick.Click.Give.
• The Alaska Community Foundation (www.alaskacf.org) hosts the Pick.Click.Give. project fund for statewide marketing and outreach.

Where do I get an application?

Click here for the 2013 application.  Applications, payment and required documentation received or postmarked after March 31, 2012 will be denied.

Do I have to file by mail?

Once you complete the onliine application a copy of your certification signatures, together with the supporting documents and a nonrefundable fee of $250, must be mailed to: Pick.Click.Give., 701 W. 8th Avenue, Suite 230 Anchorage, AK 99501.

Our organization participated last year. Do we need to reapply?

Yes, you must reapply each year of the program.  Acceptance into one year does not guarantee acceptance into the next round.  Each year's application stands on its own.  Please note that this year's application has some slight changes.

When is the deadline to apply for this year's PFD application?

The next application deadline will be March 31, 2012 for the 2012 PFD cycle.  All applications must be postmarked no later than March 31, 2012.

Is there an eligibility application fee?

The fee to apply is $250. This year marks the end of the subsidized support that was available during the three-year pilot for Pick.Click.Give. The fee was reset to fully cover administrative costs of the program. This arrangement guarantees that every dollar donated reaches the eligible organization. The $250 nonrefundable fee must be paid by check or money order payable to the State of Alaska.

How do I know if my organization is eligible to be included in the PFD Charitable Contributions Program?

In order to be eligible for the program, each Alaska 501c(3) organization must certify that it meets certain requirements established in the law. The law states:

Except for each campus of the University of Alaska, the department may include an educational organization, community foundation, or charitable organization on the contribution list for a current dividend year only if the organization:

• before March 31 of the qualifying year, files an application for inclusion on the list for that dividend year on the form required by the department;
• is exempt from taxation under 26 U.S.C. 501(c)(3) (Internal Revenue Code) as an educational or a charitable organization on the date of application;
• was qualified for tax exempt status under 26 U.S.C. 501(c)(3) (Internal Revenue Code) as an educational or a charitable organization during the two calendar years that immediately precede the year the application is filed;
• unless federally exempt, has a current Internal Revenue Service Form 990 on file with the United States Department of the Treasury, Internal Revenue Service, or, if the Internal Revenue Service has granted a filing extension for the current year, has on file that form for the immediately preceding year;
• is directed by a voluntary board of directors or local advisory board whose majority of members are residents of the state;
• provided in the state aid or services during the two calendar years that immediately precede the year the application is filed;
• receives at least $100,000 or five percent of its total annual receipts, whichever is less, from contributions;
• has completed and provided to the department a financial audit with an unqualified opinion conducted by an independent certified public accountant for the fiscal year to which the Internal Revenue Service Form 990 required under (4) of this subsection applies; this paragraph applies only to an organization with a total annual budget that exceeds $250,000 during the fiscal year to which the Internal Revenue Service Form 990 required under (4) of this subsection applies;
• does not make grants or contributions to an organization that is exempt from taxation under 26 U.S.C. 501(c)(4) or (6)

What documentation will I need to support the criteria listed above?

Any applying organization must also provide the following specific documentation:

• A completed application form
• Copy of IRS Form 990 (one of three versions required by the IRS depending on size) for the previous fiscal or calendar year
• IRS 501(c)(3) tax exempt letter of notification
• Audited financial statement (most recent, published, audited financial statements complete with auditor's opinion letter if your organization's annual budget exceeds $250,000)

If your organization is not exempt from filing an IRS form 990, 990-EZ, or 990-N you must provide the most recently completed and current version of the form you are required or elected to file. The chart below will help you determine the information you must provide with your application.

Examples of ways to use this chart:

• If your organization ended its last fiscal year on 12/31/2011, you may submit either your 2011 or your 2010 990 form with your PCG application.
• If your organization ended its last fiscal year on 9/30/2011, and you file your PCG application after 2/15/12, you may submit either your 2010 or 2009 990 form AND a copy of the IRS approved filing extension.
• If your organization ended its last fiscal year on 6/30/2011, you may submit either your 2010 or 2009 990 form AND a copy of the IRS approved filing extension.

Note: Your IRS approved filing extension must have a due date that is greater than the date of your PCG application.

Are there other eligibility requirements?

Yes, other than a community foundation or the University of Alaska, the Department of Revenue may not include a charitable organization on the contribution list for a dividend year unless the purpose of the organization is to provide services for:

• Youth development
• Workforce development
• Arts and culture
• Primary, vocational and higher education
• Health and dental care
• Recreational facilities
• Child abuse and neglect
• Economic development
• Food assistance
• Libraries
• Public broadcasting
• Recycling of waste
• Animal rescue
• Zoos
• Aid and services to:
  • the elderly
  • low income individuals
  • individuals in emergency situations
  • victims of crime
  • disabled individuals
  • individuals with mental illness

Why can't I find the specific work of my organization's mission listed in the categories?

Your organization must provide a service or services on the list set out in the law, as described above. Your organization must actually provide (not just fund) programs, aid or services. Please evaluate the list carefully and determine if your organization provides a service(s) that fits into any of the categories.

Why do certain programs seem to be excluded from the list of eligible organizations?

While the law lists program areas that are quite broad, it does not encompass all Alaska nonprofits.  Even as currently written, the law provides an unprecedented opportunity to help increase individual giving in Alaska.

What if my organization is so small in budget size or is federally exempt from filing that we are not required to file a Form 990 with the IRS, can we still qualify for the PFD Charitable Contributions Program?

All charitable organizations are required by the IRS to file one of three versions of the 990 depending on size; Form 990, Form 990EZ, or Form 990N (e-postcard). The appropriate version of the 990 needs to accompany the application unless the organization is federally exempt from filing.

What would qualify as a charitable contribution under the law?

Most individual charitable giving, corporate support and foundation support would qualify as charitable contributions. United Way support would also be considered a charitable contribution.

What does not qualify as a charitable contribution under the law?

Government grants or earned revenue would not constitute charitable contributions.

How will my organization be listed on the on-line PFD application?

Qualified organizations will be listed on the PFD application as part of a comprehensive list of all qualified organizations. Your organization will be listed in the location that corresponds to the physical address of your headquarters or main office in Alaska.  If you want your organization to be listed in additional locations, the application allows you to provide one physical address in each location where you maintain an ongoing operation that provides a qualifying program, aids or services.  Note that physical addresses must be used – post office box addresses will not be accepted.

PFD applicants can search for your organization in multiple ways – by your name, by your geographic location, by your service, by region and in an alphabetical listing. 

The application requires my organization to "certify or to self-certify." What does this mean?

The application includes a number of questions that establish eligibility under the terms of the law. By signing the application, your organization's Board Chair and CEO/ED certify that the information being supplied is true and correct.

Is a community foundation eligible?

Maybe. Although community foundations do not have to fall within the program areas specified in the law, they must meet the other eligibility criteria to be part of the Pick.Click.Give.

Who determines if my organization is eligible to be included in the program?

The law sets out the precise criteria for eligibility. The criteria must be demonstrated through self-certification and the submission of ALL required documents. Ultimately the Department of Revenue determines eligibility. The United Way of Anchorage will process the applications and adhere to the review and independent appeal processes established by the Department of Revenue.

If my organization applies this year, does that mean I have to re-apply next year?

Yes, each qualifying year stands on its own. The process is fresh every year and just because an organization is listed this year that does not mean it will automatically make the list next year.

What organizations are not eligible to participate in Pick.Click.Give.?

According to the law, an organization is not eligible if it is an affiliate of another group, or if it makes grants or contributions to a 501c(4) or 501c(6) organization.

The law says that an organization cannot be an "affiliate" and be eligible. What does that mean?

An affiliate is an organization that is under the control of a group whose main function is influencing elections - in other words a group whose focus is political activity. Specifically, the Alaska Statute referenced [AS 15.13.400(8)(B)] in the PFD law addresses organizations (which in state law are called "groups") which are primarily political, and are under the control of candidates for office or those working to elect people to public office.

What happens if my organization does not meet the eligibility criteria this year? Can we apply next year if we fix whatever was missing?

Yes, each qualifying year stands on its own. If an organization didn't qualify this year, it can apply next year. However, there is no guarantee that a subsequent application will lead to a decision of eligibility.

What recourse do I have if my organization is deemed ineligible by the Department of Revenue?

The law allows any organization to appeal if it is deemed ineligible. These appeals will follow the process described in the state’s Administrative Procedures Act (APA).

If my organization is not on the list, can a person still make a donation through Pick.Click.Give.?

No, donations cannot be made through Pick.Click.Give. to organizations that are not on the list. However, that does not stop PFD filers from giving financial support through other vehicles.

Can our organization know about our donations now?

The donations for 2012 are not available until the late fall of 2012 and there is no way to determine which organizations are receiving pledges at this time.
 
To recap how the process works:

1. Alaskans have from January 1 to March 31 to file for the PFD and at that time they can choose to participate in Pick.Click.Give.
2. Then everyone waits until October to see how much the PFD check is for each Alaskan.
3. At that time, the Department of Revenue looks at each PFD application that has a requested pledge through PCG.
4. It is then determined how much of the dividend the filer will receive after any state garnishments are taken.  The state garnishes dividends for a number of reasons.
5. Then the donation amounts are deducted from the remaining funds.
6. At this point, the Department of Revenue issues a 1099 to each Alaskan filer that states the amount of the dividend and the amount of the donations that will be distributed.
7. Generally by November of each year, the lists of donors and a single check (compiling all of the donations for the organization) are generated and sent to the legal address of the organization.

So the short answer is that an organization will not know the total amount of contributions nor receive a check until generally November of each year.

How will I be notified if an individual designates money to my organization?

Because of PFD confidentially rules, an individual must specifically authorize the Department of Revenue to release information about the donor.  At the time of disbursement, you will receive information about any donor who designates money to your organization and authorizes the release of his/her information. We encourage organizations to treat their PFD donors in the same way as others who give - through appropriate recognition and stewardship.

How do I receive the money when an individual designates my organization as a recipient?

Payments will be made through the Department of Revenue and distributed by the United Way of Anchorage.

When will I receive the donations?

Donations will be transmitted to designated organizations in late October/early November of the year they are made.

How will my constituents know if our organization is on the PFD Charitable Contributions list?

Make use of your normal donor communication strategies - personal contact, direct mail, newsletters - to inform your constituents that your organization will be part of Pick.Click.Give.  The “Bright Ideas” section of this website captures some of the promotional ideas used by other organizations.  We also encourage you to use anything in the Toolkit to help tell your story.