Tennessee Valley Authority
BUSINESS PRACTICE 21
Contributions
WHAT
TVA helps to enable a better quality of life in the communities it serves by promoting a favorable environment for economic growth and by supporting educational and community goals that are identified by our customers, employees, and the communities in the Tennessee Valley . TVA helps achieve these goals by making contributions of cash, equipment, supplies, use of facilities, land-use dispositions, and the time and expertise of its employees, consistent with applicable laws, policies, and practices. Additionally, as volunteers, TVA employees make significant contributions of their personal time.
TVA Contributions are made when the request meets the guidelines outlined in this document and when funds are available. When sponsorships are agreed on, the benefit to TVA should be commensurate with the level of TVA's support, and based on sound business practice. Given the fact that TVA is a federal entity that does not receive public funding, it is imperative for TVA's Corporate Contributions program to operate in the context of the larger picture of investments made in conjunction with local TVA offices, facilities, community support, customer resources activities, and economic development efforts. To this end, its Corporate Contributions program is an integral component of a broader corporate strategy to support educational activities, human services, civic/business partnerships, and other public interest activities in the communities where TVA supplies power and operates plants and offices, and where its employees and stakeholders live and work.
For this Business Practice, “Contributions” refers to sponsorships, table purchases, contributions, chamber memberships, in-kind donations, and services, whether paid from the Corporate Contributions budget or by a TVA organization.
Corporate/individual memberships that are programmatic (e.g., EPRI, IEEE, PRSA, NEI, etc.) and paid by TVA should be budgeted separately as a line item and paid by each SBU. However, each SBU should submit electronically a list of these memberships as budgeted for the following fiscal year to Corporate Contributions by July 1 of each year (using the form provided).
AREAS OF FOCUS FOR TVA CONTRIBUTIONS ACTIVITIES
TVA's President & CEO will determine the company's contribution priorities. Each SBU with a Contributions budget will submit electronically a list of Contributions anticipated for the next fiscal year to Corporate Contributions by July 1 of each year (using the form provided). Based on that, Corporate Contributions will submit one annual Contributions budget to the CEO for approval by August 1 of each year.
Primary areas of focus include education, human services, and civic/business partnerships, as outlined below.
• Education - TVA supports public education including support for learning activities associated with energy and environmental education, and vocational and technical education in skill areas that are vital to TVA's workforce.
Priority on Partners in Education (PIE) - TVA's financial and in-kind contributions to the Partners in Education program mirrors the donations of time and money by TVA employees and customers. This employee link is key to the continuation of TVA's support to the PIE program. PIE is an important educational alliance that adds value to secondary and elementary school systems, provides volunteer opportunities, and helps ensure the success of TVA's future workforce.
Priority on Workforce Training - TVA's workforce training encompasses several concepts including the CAD-Net program, Investment Challenge, and engineering scholarships, and supports post-secondary education, particularly environmental, technical, and vocational education, etc. TVA's objective is to support programs and institutions that educate and train individuals with the skills TVA will need in the future, as well as the skills that those industries being recruited into the Valley region will need.
In further support to educational initiatives, TVA contributes surplus equipment, supplies, and materials as well as cash contributions to public schools. In-kind awards are typically handled by TVA's asset recovery managers or other leaders responsible for the disposal of surplus TVA property and coordinated with the Corporate Contributions staff.
• Human Services - TVA will support activities that enhance and improve the quality of life for the people of the Tennessee Valley . Organizations that employees are heavily involved in and support financially (which qualify under TEAM TVA guidelines), and those organizations that benefit the greatest number of people will be targeted above all others. Human services organizations are those that provide a service to members of a community and are not typically linked to a particular health problem. Examples include CFC, United Way , and Habitat for Humanity, etc.
• Civic/Business Partnerships - TVA supports civic and business activities that are important to our customers, economic development partners, public officials, community leaders, and other stakeholders. Cash or in-kind contributions made for these purposes will take into consideration the recommendations of employees who are familiar with the interests and needs of TVA stakeholders across the Valley. A higher priority will be given to those requested by TVA customers who are also contributing.
• Other Considerations - TVA will occasionally consider requests related to the areas of health and arts and culture. Contributions in these areas will be limited, with higher priority given to those requested by TVA employees and customers who are also contributing. In-kind contributions will be the preference over cash contributions.
Because TVA receives more requests than can be acted upon favorably, criteria have been established to help guide the allocation of available funds. These internal TVA guidelines will be followed for consistent and objective administration of TVA's contributions:
GUIDELINES
• All Contributions will be processed through the Corporate Contributions staff for approval and payment, regardless of which SBU houses the budget for the request.
• All corporate/individual memberships that are paid by TVA shall continue to be budgeted and paid by each SBU.
• Contributions shall be aligned to the focus areas previously outlined and with TVA's mission, goals, and strategic objectives and guided by TVA's overall business strategy.
• Contributions shall be targeted to 501(c) (3) or other legally recognized nonprofit organizations or public institutions ( e.g. , public schools).
• Priority consideration is given to programs and organizations where TVA employees and stakeholders (customers, economic development partners, community leaders, etc.) are actively involved.
• Smaller and more equitably dispersed contributions will be favored over fewer and larger contributions. Consideration will be given to larger requests if there is significant customer financial involvement and/or if the project offers unique value in support of TVA's objectives.
• Priority consideration is given to programs and organizations in or near communities where TVA plants, offices, or other major facilities are located.
• Favorable consideration is given to PIE schools where contributions to improve educational activities and facilities are leveraged with the involvement of TVA volunteers.
• Favorable consideration is given to supporting the voluntary efforts of TVA employees and retirees including Team TVA volunteer program participants, especially where a significant number of volunteers are engaged in educational, civic, or other charitable activities in their community or where TVA employees are involved in leadership roles in such activities.
Ethics Considerations
Employees may submit suggestions that TVA consider contributions to qualified organizations with which they are involved. Under ethics rules, however, an employee should not participate in TVA's consideration of or decision on proposed contributions to any organization for which the employee or a close relative is an officer, director, trustee, agent, contractor, or employee. Exceptions to this restriction may apply if TVA has approved the employee's service with the organization as part of the employee's official TVA duties, or the participation has been approved by a supervising TVA officer in coordination with the Designated Agency Ethics Officer's staff in the Office of the General Counsel.
WHO
This practice applies to all TVA organizations and employees, and to those making funding decisions on behalf of TVA.
WHY
• Establishes Corporate Contributions as a clearinghouse for TVA-wide contributions and community investments, which provides for more consistent adherence to the established guidelines, eliminates dual contributions ( e.g. , from a TVA organization and from Corporate Contributions), and provides for better external recognition.
• Supports educational, human services, civic and economic development, and other activities in a manner that furthers TVA's statutory mission, and targets those activities that are important to TVA's customers, employees, public officials, business and opinion leaders, and other stakeholders in the communities TVA serves.
• Promotes understanding and manages expectations of TVA's role as a community leader and good corporate citizen.
• Increases the benefit and fairness of TVA's contributions by targeting such contributions and by ensuring that the number, size, and geographic distribution of those contributions are handled in a consistent and equitable manner throughout the Valley.
• Positions TVA as a supporter of public education and educational programs in the Valley that support TVA's internal workforce planning strategies and that contribute to the overall preparedness of the region's future workforce.
• Provides opportunities to partner with TVA distributor customers, direct-served customers, vendors, stakeholders, and key community organizations in order to leverage the benefit of TVA's contributions.
• Establishes a mechanism to ensure TVA has an accurate accounting of all contributions and investments.
• Establishes the need for a budget for TVA's annual contributions.
HOW
Contributions that meet TVA's contributions criteria may be made in a variety of ways:
• Direct payments of cash through Corporate Contributions. These payments should be made by check or electronic transfer and correctly classified (see CLASSIFICATION/REPORTING section). Convenience checks should be used only in emergency situations (see Accounting Policies, Practices & Procedures: CFO-SPP- 13.9.1 Convenience Checks).
• Direct contributions of equipment (disposal of surplus property, Investment Recovery Program). Corporate Contributions staff may help coordinate such requests but are not responsible for making decisions regarding the disposition of surplus TVA property. (See CLASSIFICATION/ REPORTING section.)
• Direct contributions of employee time, talent, and expertise through support of TVA programs and activities, such as PIE, CFC, charity events, Weekend Academy , loaned executives, etc. Many of these activities are part of other organizational programs or involve activities approved by field or corporate TVA managers.
• In-kind contributions including, but not limited to, use of TVA facilities, equipment, materials, employee time, printing, and graphic support.
• Dispositions of TVA land and land use to local municipalities as well as to local, state, and federal not-for-profit entities as determined by the appropriate TVA business units, Corporate Contributions Committee, Philanthropic Council, or the President & CEO, consistent with the TVA Act and other applicable laws, policies, and procedures.
• Scholarships, internships, and training opportunities for non-TVA personnel, such as CADNet and TVA Investment Challenge programs which are operated in a number of high schools, colleges, and universities throughout the Valley. These are mutually beneficial programs administered by TVA organizations as part of their operating responsibilities.
• Volunteer activities including employee and retiree activities that may also receive some support from field or corporate organizations.
TVA Purchasing and Gold cards should not be used to make contributions. Refer to Business Practice 3 for appropriate uses of these cards.
LIMITATIONS ON CONTRIBUTIONS
TVA does not consider the following for funding through its Corporate Contributions program:
• Memberships or professional organization fees ( i.e. , those organized around a relatively narrow business issue and which collect dues from their members). Examples of approved membership types include chambers, leadership and energy organizations , etc .
• Contributions to organizations outside TVA's service area, unless those contributions are earmarked for or related to activities within the Valley.
• Endowment funds (funds could be approved and funded via a TVA organization's executive management and the President & CEO where it is determined adequate business justification exists).
• For-profit organizations.
• Hospital or college capital campaign programs.
• Organizations that have not met legal requirements to operate legitimately as a 501(c)(3) or other legally recognized nonprofit entity, have discriminatory practices, or are otherwise not in keeping with TVA's policies and guidelines.
• Training seminars, symposiums, and conferences (other than those that are directly related to TVA's primary areas of approved contributions, or where it is determined that adequate business justification exists).
• Activities that are viewed as being a part of the program operating responsibilities of TVA organizations, and are not considered a TVA contribution as outlined on page 1 of this practice.
• Grants and sponsorships for individual citizens.
• Political organizations, including organizations and programs designed to influence legislation, elect candidates to public office, or engage in lobbying activities.
• Private and religious organizations, including educational institutions that limit enrollment to those of a particular faith or programs or initiatives where the primary purpose is the promotion of religious doctrine or a religious point of view, and the initiative benefits the organization.
• Fraternal organizations and other similar membership groups.
• Travel or student exchange programs supporting individual students or adults, except academic field trips for groups of students, math teams, science clubs, etc.
PROCESS
Approvals
While all Contributions will be processed by Corporate Contributions, decisions will be made jointly with field personnel. Responses to such requests should be consistent with the criteria and goals regarding contributions.
If a SBU has a Contributions request, they will work with the Corporate Contributions staff to process funding of the request for record-keeping purposes.
Chamber memberships are considered a Contribution and will be processed through Corporate Contributions, regardless of which SBU houses the budget for these memberships. Other corporate/individual memberships paid by TVA will be budgeted and paid by each SBU.
Requests for contributions greater than $10,000 and not exceeding $50,000 will require approval of, or notification to, the Corporate Contributions Committee.
Requests exceeding $50,000 shall be referred to the Philanthropic Council; however, the Philanthropic Council shall be apprised of all requests greater than $10,000.
Any level of contribution may be approved by the President & CEO without committee approval, but shall be reported to the Corporate Contributions Committee ($10,000 - $50,000) or Philanthropic Council (greater than $10,000).
The Corporate Contributions staff is responsible for partnering with Customer Resources, Economic Development, Government & Valley Relations, plant personnel, and other TVA field staff who are in a position to identify and evaluate local opportunities for contributions funded from the Corporate Contributions budget.
Funding Requests
By July 1 of each year, every SBU should submit a list of Contribution requests anticipated for the following fiscal year to the Corporate Contributions staff using the form provided. Corporate Contributions will advise the SBU of the proper approval process and will process and fund each request, regardless of where the budget for the request is housed.
TVA will accept and consider contribution requests from any outside not-for-profit organization, but approval is contingent upon whether or not the organization and the request meet TVA's Corporate Contributions guidelines and criteria for funding. Also, as with any contributions program, there are limited funds to go around and a seemingly unlimited number of requests; consequently, TVA cannot honor all legitimate and justifiable requests submitted for consideration.
Contribution requests from outside TVA must be made in writing (by the organization or TVA employee) and must address a specific project or need. Requests for cash donations will not be evaluated via telephone, and no organization or activity will be funded on an automatic or continuing basis.
Distribution of Complimentary Tickets/Passes
Periodically, the Corporate Contributions program will receive complimentary tickets/passes for various cultural, recreational, and educational community activities and events. These tickets/passes are received as a direct result of TVA's corporate support and/or membership with a particular nonprofit organization.
These complimentary type tickets/passes, etc., are generally few in number; therefore, it is recommended that the tickets/passes, when available, be appropriately distributed among TVA's officers, or other employees whose programmatic responsibilities are most closely related to the activity or event.
To determine interest, Corporate Contributions staff will notify appropriate personnel when such tickets/passes become available.
Philanthropic Council
The Philanthropic Council will review and approve requests for contributions that exceed $50,000. The council shall consist of the President & CEO, General Counsel, CAO/EVP of Administrative Services, and SVP of Corporate Responsibility and Diversity. The Philanthropic Council shall be apprised of all requests greater than $10,000.
Many requests are typically submitted directly to the Board or a TVA officer by stakeholders or outside organizations. Such requests may be major one-time contributions or multi-year funding commitments that require a more strategic analysis. Frequently, these requests involve TVA stakeholders and high-profile, high-exposure community or civic projects with involvement by senior TVA officials. The council will review these requests and make recommendations, in consultation with others as appropriate.
Corporate Contributions staff will process the expenditure of funds.
The council will meet on an as-needed basis.
Corporate Contributions Committee
The Corporate Contributions Committee will review requests for contributions greater than $10,000 and up to $50,000. The committee may also be asked to consider requests for funding less than $10,000 and be asked to provide counsel, to review the program's effectiveness, to provide an evaluation of new programs, and to provide an annual report that includes a statement of compliance with BP21.
This committee consists of the Corporate Contributions manager and one representative from each of the following organizations: Corporate Responsibility & Diversity, Customer Service & Marketing, Economic Development, CFO, COO, Communications, Procurement, and Human Resources. Each committee member shall have authority to represent their respective organizations in funding decisions rendered by the committee. The committee may consult others as appropriate for input into the decision-making process.
The committee is scheduled to meet quarterly but will also meet on an as-needed basis with Corporate Contributions staff facilitating the meetings. Four members will constitute a quorum.
President & CEO
Any level of contribution may be approved by the President & CEO without the committee's approval but shall be reported to the appropriate committee or council. Corporate Contributions staff will process the expenditure of funds.
Corporate Contributions Staff
Community Relations staff may approve contributions of $5,000 or less. The SVP of Corporate Responsibility & Diversity may approve contributions of up to $10,000.
ROLES
Corporate Contributions Manager
• Advocate consistent implementation of the Contributions Business Practice.
• Consult with TVA leaders at all levels about contribution decisions.
• Administer the Corporate Contributions program and committee process.
• Seek counsel on behalf of the Corporate Contributions Committee.
• Maintain accurate records.
SBU Leaders/TVA Officers
• Advocate consistent implementation of the Contributions/Sponsorships Business Practice.
• Monitor SBU efforts to ensure compliance with all aspects of the Contributions/Sponsorships Business Practice and facilitate the timely reporting and classification of all contributions.
Philanthropic Council
• Establish philanthropic strategy and budget.
• Evaluate and approve contribution requests that exceed $50,000. Be apprised of any contribution greater than $10,000.
• Review contributions that exceed $50,000 and that were approved by the President & CEO.
Corporate Contributions Committee
• Evaluate and approve requests greater than $10,000, up to $50,000.
• Consult with SBU/BU leaders, as appropriate, to ensure all pertinent information is considered in the decision-making process.
• Assist in evaluation of new and existing programs.
• Review requests (greater than $10,000, up to $50,000) approved by the President & CEO.
• Review Corporate Contributions program for compliance with Business Practice 21.
CLASSIFICATIONS/REPORTING
Correctly reporting and classifying TVA contributions will provide consistency and accuracy for purposes of TVA reports to stakeholders about the contributions TVA makes to nonprofit organizations in the Valley.
Cost Classifications
When TVA donates to a legally recognized nonprofit organization, the purpose of the contribution will determine how it is classified for cost purposes:
41V: Membership Dues - Dues paid to a public or legally recognized nonprofit organization on behalf of TVA or a TVA employee where the funds go into a general fund of the organization and are not specifically directed as support for a program or project. See Limitations on Contributions section for examples of membership dues that will be considered.
41W: Sponsorships/Conferences/Events - An investment made to a legally recognized nonprofit organization or public institution to support a conference/annual meeting or other nonspecific program for which TVA is recognized as a sponsor and employees may or may not participate. Examples: annual economic or industrial development conferences, school or distributor events.
41X: Sponsorships/Table Purchases - An investment made to a legally recognized nonprofit organization for a specific event where the sponsorship is for a stated “fundraising” purpose for which TVA receives recognition as a sponsor and employees participate. Examples include tickets to attend a dinner, ball, concert or other show, and participation in golf tournaments.
41Y: Chamber Dues - Dues paid to the chamber of commerce organizations across the Valley for TVA membership.
41Z: Contributions - A cash or in-kind donation made to a legally recognized nonprofit organization or public institution to be used specifically for a project or program. The donation is made without an expectation of receiving something tangible ( e.g. , tickets) in return.
Should reimbursement be received for any donation, it should be credited back to the same cost class that was debited for the original donation.
Reporting
Cash contributions paid to legally recognized nonprofit organizations and classified as directed above shall be used as the official record of cash contributions.
Funds raised by employee groups, surplus items, in-kind contributions, and volunteer hours should be reported to the Corporate Contributions reporting system (through each organization's community investment reporter, if applicable). For a list of current reporters, please contact the Corporate Contributions manager.
RESOURCES
Corporate Contributions Committee
Corporate Contributions Manager
Community Relations Senior Manager
Corporate Responsibility & Diversity Senior Vice President
BUSINESS
PRACTICE 21
Contributions
Last Revised July 2007