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    anajoce's Avatar
    anajoce Posts: 2, Reputation: 1
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    #1

    Oct 20, 2011, 11:16 AM
    My question is about sharing the money raised in fund-raising...
    I am the fund-raising director of a youth track and field organization located in California.

    When your organization is 501(c) (3) certified, I am told that the law requires that all fund-raising monies that are raised are to be shared equally with all participants of your group. We have fund-raising opportunities where we actually volunteer to work at the concession stands at stadium events. A portion of the money earned from selling food and beverages is given to our group as a fundraiser. We have trouble getting all parents to participate, because they know they'll benefit even if they don't help out.

    Question: I'd like to know if our organization can give a discount registration fee to the parents who volunteer to work this fundraiser. In other words, have a registration fee for those parents who volunteer to work with us, and a higher registration fee for those parents who don't volunteer? If not, how is it possible for the private schools to have two-tier school registrations for parents who participate in fundraisers vs. those who do not?
    ebaines's Avatar
    ebaines Posts: 12,132, Reputation: 1307
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    #2

    Oct 20, 2011, 12:19 PM
    Yes you can set up a two tiered pricing strategy. But be careful - you must provide equal opportunity for all to participate and earn the discount, and it must be clear that discounts are earned only in this way (for example you don't give discounts for being on the board of the directors or for making a large donation).

    Regarding your statement that "all fundraising monies that are raised are to be shared equally with all participants of your group" - I'm not sure what you mean by that, nor what it has to do with your question. But organizations frequently provide a higher level of benefits to some people versus others - for example schools may grant scholarships based on certain criteria of their chosing.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,302, Reputation: 7692
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    #3

    Oct 20, 2011, 01:49 PM
    Yes, if every parent was wanting to do this, is there enough space and time, also who is going to decide who does it what night, if 1/2 the parents say, yes they can do it, but only on one day, what do you do. Will there be options to other fund raising activity also instead of this ( if there is schedule conflicts)
    ebaines's Avatar
    ebaines Posts: 12,132, Reputation: 1307
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    #4

    Oct 20, 2011, 01:58 PM
    Fr_Chuck raises some good points. I would add that you must have a documented policy that is approved by the board and that covers issues such as who administers the program and how/when parents are notified to confirm whether they met the criteria for discount.
    anajoce's Avatar
    anajoce Posts: 2, Reputation: 1
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    #5

    Oct 21, 2011, 09:10 AM
    So, as long as half of the membership vote and approve, then 2-tier reg. Is OK.
    If I understand the comments correctly, as long as half of the membership vote to approve the 2-tier registration, and as long as it's clear in written policy on how the fundraising assignments will be offered, our organization can move forward. Is this understanding correct?
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,302, Reputation: 7692
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    #6

    Oct 21, 2011, 09:42 AM
    Anajoce, please do not start a new thread, this is not a blog and separate threads do not make sense to someone new reading the addition. I have moved it to the old thread.
    If you want to add more info, please answer your own question.

    What is the rules in the corporation documents as to the vote required to set or change membership rules.
    Is it by general memberhip, or by board of directors ?
    Is the vote 1/2 of total membership or just 1/2 of those showing up for the vote.
    Many groups require a 3/4 majority of those present at voting, our group the board of directors actually hold full power to change and set rules and regulations.

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