Question:
Can I have a fundraiser without having a non-profit organization?
1970-01-01 00:00:00 UTC
Can I have a fundraiser without having a non-profit organization?
Five answers:
2014-03-24 04:31:18 UTC
I know this is an old post, but, I am looking for the same answer to a similar question. : ) I think Pat needs some Prozac, or she doesn't want you competing with Her animal shelter.??? Bazaar that someone feels the need to give that much input. Sorry, Pat. I am starting a botanical garden that is for profit.



-Alisha

Longview, TX
?
2017-01-11 19:33:56 UTC
Fundraising For Profit Business
jeremy_goncalves
2014-02-23 05:41:31 UTC
You can raise money. You do not have to be a non profit or get any kind of soliciting license from the state as you are not a charity organization. All contributions will be concidered as income and will have to pay taxes. You are not raising money for any other organizations besides your own so you do not need permission to raise money. Its the samething as little League baseball teams standing on the corner asking for money to help the team out. If I start a business of my own and I solicit money and tell the people I am looking for sponsorship and support to help me send care packages over seas to vets. As long as im doing that, following all state tax laws and the donors know there support dose not qualify for tax exemption then I will fall within any laws in my state. And I can even use a portion of the money as my salary as im not a non profit.. I hope this answers your question. What pat above is talking about is if you open a nonprofit or are raising money for a nonprofit.
2009-12-13 18:28:26 UTC
fffffff



I answer this question at least six times a day.



You CAN NOT solicit money from the public without a license from your state.

Your state only gives such licenses to legitimate nonprofit corporations.

Any money you do raise is TAXABLE INCOME.

Yes, really.



And you can't just "start up a nonprofit organization".

The legal documents must be filed by an adult.



You have no concept of how to build or manage a nonprofit, or how to work with the animals.



I know you mean well, but this is simply too much for you.

There's much more to it than you think.



You need education in the fields of business, nonprofit management, social services, and the causes and effects of animal homelessness.

You also need life experience to teach you to deal with all of the types of people you'll encounter.



This is not just about "helping animals".

You don't just put a bunch of cages in a room.

Do you have any idea of some of the horrible conditions in which animals are often found?

How do you plan to deal with that?



There are thousands of organizations already doing the work that you want to do.

And they're already competing for VERY scarce dollars.

Find a good one and volunteer.

Take relevant classes in high school and college.

Eventually, you can get a paid job with a nonprofit.

You could get a degree in nonprofit management.



A nonprofit is a corporation, just like General Motors, or Sears, or McDonald's.

You file the incorporation documents with your home state the same way.

There must be an official address and place of business, by laws, a board of directors, board meetings, and minutes of those meetings.

They are required to file formal reports on their financial activities with the state AND the feds.



Now here is where the differences start.



The difference is that a nonprofit has no owner and no stock.

When the corporation brings in more money than it spends, the excess is called a "fund balance", instead of a "profit".

That fund balance can be re-invested in the corporation or held in savings for future projects or for lean times.

The board of directors makes those decisions.



Once the org incorporates, it must apply to the IRS for a tax exempt status.

Those rules are under section 501(c) of the IRS code.

Most charities are under (c)(3).

Labor unions are under c5.

There are about two dozen different categories.



That means that the ORGANIZATION does not pay taxes on its income.

The EMPLOYEES of the organization pay their personal taxes under the same rules as everyone else.



Individuals who donate money to c3 orgs can deduct it from their income taxes, if they itemize.

Donations to other categories - c4, c5, etc. are not deductible.



There are thousands of state and federal rules governing activities, finances, and reporting.



For example, c3 orgs CAN NOT endorse political candidates and there are strict limits on the lobbying that they can do.

That's why labor unions can endorse candidates and churches can't.



State laws on soliciting donations from the public vary, but all states have them.



C3 and C4 orgs can be eligible for government grants for their work.

They can also solicit money from charitable foundations.



But then the foundations will come to their offices and tell them they're doing everything wrong and refuse to give them any money unless they change everything they do.

And even then they might not give the money.



I hate foundations.



Look at http://www.irs.gov/charities/index.html

There is more info at www.foundationcenter.org

Source(s):

27 years as volunteer, staff, manager, board member, board president, and consultant to nonprofit corporations.
Tori
2009-12-15 10:26:27 UTC
Individuals can "gift" or donate someone else money up to a certain amount (I'm not sure the current amount for this year but it is up above $10,000) and no one owes the IRS taxes - neither the giver or the recipient. I would think that somehow you could use this strategy to help raise the money it would be legal as long as the donor understands that it will not be a tax deductible donation since you do not have a non-profit set up.



I would think this "gift" could also be a donation so you could have an auction or some other fundraising activity to raise funds to get the shelter started.


This content was originally posted on Y! Answers, a Q&A website that shut down in 2021.
Loading...