Spinoff on the fundraising thread?

[3DisneyBuggs]

Are there guidelines for a fundraiser? Can anyone hold one or do they need a certain permit or tax number?

 

[barkley]

it gets realy sticky and it depends on what the cause is and where it is held/where the recipient(s) live. one thing that can cause huge problems is how it's promoted-there are postal laws that regulate what can be sent through the mail for fundraising purposes (and you can get fined big time for violating). some fundraisers that include raffles are highly regulated regarding mailings.

some places require a permit, some require that a bank account or escrow account with financial oversite and accountability is in place (to prevent misuse of funds). some require a trust/trustee arrangement.

there are some that can result in being detrimental to the cause (depending on how it's structured, a fund raiser for an ill child can be viewed as monies that have to be used to cover medical costs BEFORE charitable (like shriners) or gov. assissted will pay a portion. so the parents may end up with higher out of pocket expenses by virtue of the having received the funds.

anyone considering one needs to check out the applicable laws and procedural guidelines in their area (as well as consulting with a tax person-without tax exempt/charitable status there could be issues with taxable monies)

 

[rt2dz]

There is all sorts of info on fundraisers here

 

[Lisa loves Pooh]

Anyone can raise money for anything. Typically businesses will only donate for not for profit organizations--so in case where funds or something are being raised for a sick child or a victim...accounts are set up or the fundraising is sponsored by a not for profit.

If you have to set up a bank account--it must be an entity--either by person or by a recognized business--I forget the legaleze...but basically, if you have a golf tournament--you can't go to Bank of America and open an account for Save the Whales Golf Tourny unless you set it up as an entity in your state.

For donations--business typically require a tax ID number--which you obtain through an existing organization--or by setting up your entity.

If you work alone--and want to be not-for-profit...there is an extensive paperwork process that you must go through and until that time you are approved...you pay taxes like everyone else.

There was a young woman here who needed a bone marrow transplant--co-workers of the mom got a fundraiser together and with the help of a not-for-profit as their entity...they were able to solicit all that they needed to raise money. I'm not certain of any tax liabilities on the family for receiving the contributions to cover the medical expenses.

So for the other example--it may be possible that monies raised would be considered income and be taxable (not including any tax credits for adoption).

HTH.

(I'm speaking strictly from the fundraising side--I yield to accountants and tax experts on the tax portions).

 

[Lisa loves Pooh]

Oh and on the issue of permits--some cases I need a permit..others I am at an event that covers my permitting. But usually--if you are going to be taking up space in a town such as a park or public street--permitting may apply. What you pay for that permitting would be contingent on your tax exemption status.

However--for bucket drops at Walmart and Publix--I provide a letter from the organization I represent with their Tax ID # and I am permitted to raise money within their rules.

I have seen collections for individuals--and that can be done as well..requires cooperation of the store...and how the store decides to get the money to the individual for their recovery/treatment I am not aware of.