Frequently asked questions:

Question:

How long should a Foreign Currency cheque from a U.S donor take to clear. Our Bank makes us wait three weeks and this seems a little long.

Answer:

There are two methods in the banking system to clear Foreign Currency cheques. The regular clearing system should have your cheque cleared within five to seven working days, and then your money will be available. Since, according to U.S law, cheques can be returned after his period, some of the banks require an absolute authorization from The U.S bank that the cheque will not be returned. Not only does this cost extra charges, it takes up to three weeks.

 Which system is used is a matter of  Bank/Branch Policy

 Some banks are stricter and will send every cheque to absolute clearing, with others it depends on the size of the cheque. Few banks will try to receive information about the donor/foundation in order to make this descision.

One request : if your bank is not flexible with its policy, find another. Do not convert these cheques with money changers – it causes irrevocable damage. Many money changers clear their cheques with Banks in the Arab Sector , and the U.S donor receives them back stamped with the seals of Banks in Jordan or Egypt. This will take some explaining to the I.R.S and put the foundation or donor in a compromising situation.

Question:

Can an Amuta (Not-for-Profit) take bank loans? My bank said that it is against the law..

Answer:

If the Corporate By-Laws of the Amuta allows loans there is not legal problem. The standard by-laws make no restriction as does not the Amuta law. Government funded amutot may be restricted by The Treasury to the amount of Bank loans – this depends on which sort of funding they receive.

The Bank may have a loaning policy against lending to Amutot – but that is policy and not law.

Question:

I receive cheques made paid to the order of different projects that we run. The bank refuses to deposit them as the account is in the organizations name. Can this be solved?

Answer:

Sure. A simple form allocating the organization a Trade Name will allow you to deposit cheques bearing that name. There is no real restriction to the amount of Trade Names but it should not seem like your organization is receiving third party cheques – this lights up some red lights.

Question:

My job as a fundraiser requires frequent trips abroad. Can I have issued a credit card from our Amuta's account instead of using my own and getting costs refunded?

Answer:

It is possible to have a corporate credit card for a Not-For-Profit, but a littlerare. The majority of Non-Profits require at least two corporate signatories as requires standard by-laws. A credit card effectively allows one person to withdraw funds without any supervision. In order for this to happen a new separate amuta resolution should be signed by the Steering Committee.

Generally the banks will require some collateral in order to be able to allocate a credit card as the bank is liable to pay any charges made on the card. This will depend on the line of credit on the card and the nature of your banking relationship.

If you have any questions, our professional staff will be glad to assist. Please feel free to contact us.