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rmadson · Sep 3, 2011, 06:35 PM

What kind of fund raising can be done and what donations be legally accepted for an organization that is not a non-profit yet (application has been submitted but not approved as of yet). What funds can we legally accept without a state license to accept funds (we live in WI). We need to raise some money but don't want to do so illegally. Ideas would be greatly appreciate

Fr_Chuck · Sep 3, 2011, 06:45 PM

You can accept a gift but it will not be tax deductable to the giver. It would be the same as giving a gift to any business.

Also how are you going to be asking for the money ? There are rules and laws locally, for example in my location, you can't go door to door, or stand on a corner without a permit from the local government

rmadson · Sep 3, 2011, 06:56 PM

Fr_Chuck,

Thanks for the reply. We are planning on doing fund raising events. We are organizing a Country Hodag that we will sell tickets for and then sell food at the event as well as having a silent auction with baskets donated from local businesses and others. We would like to do a raffle type fundraiser where we would find one or two businesses to donate larger items (such as a car, or bike etc... ) and sell raffle tickets for that. (we would have course get a raffle license first) We were not sure if we could accept a donation of a large amount without a license. We of course would let the donor know that we are not a tax deductible organization yet.

excon · Sep 3, 2011, 07:00 PM

Originally Posted by rmadson

We of course would let the donor know that we are not a tax deductible organization yet.

Hello r:

What would be the CHARITABLE cause that people are donating for?? You don't think you can just get tax deductible donations to run your business, do you?? That ain't the way it works.

excon

Fr_Chuck · Sep 3, 2011, 07:07 PM

Have you considered asking a local church or other charity to go in with you till you get started and help ?

But why would stores give you things to give away, if you can not allow them to deduct them as a donation.
In fact most larger stores or companies will not give you things unless you are a listed charity.

rmadson · Sep 5, 2011, 01:49 PM

Fr. Chuck -

Yes, we are most definitely going to approach the churches for help and support. I can see your point about getting donations. Thanks for the input.

Wondergirl · Sep 5, 2011, 02:02 PM

Our local cat shelter, before it was legally a non-profit, had bake sales, yard sales, raffles, bazaars, craft fairs, and an open-house event we called Chocolate Sunday (a $10 charge to get in and two hours of eating and drinking from tables full of chocolate-flavored treats and desserts). We made sure flyers/signs noted that we were not yet tax-exempt.

Have you checked with the appropriate WI state office? And also county and village?

excon · Sep 5, 2011, 02:44 PM

rmadson does not find this helpful: I am not sure what kind of help about non-profit agencies an "expert" on "an island of naked chicks" can be. Also, I really don't like the tone of his answer - it seems really condenscending

Hello again, M:

It's true, I was a bit condescending... But, I STILL think you don't have a clue WHY a 501c3 tax exemption is granted.. You COULD have answered my question about what kind of charity work you plan on doing... I wonder why you didn't.

Excon

AK lawyer · Sep 5, 2011, 03:15 PM

Originally Posted by rmadson

... What funds can we legally accept without a state license to accept funds (we live in WI). ...

Just to be clear, you have formed a Wyoming non-profit corporation, but it has not yet received an IRS determination as to it's 501 (c) (3) status, corrrect?

You should review Wyoming's Uniform Prudent Management of Institutional Funds Act; that seems to be addressed to the issues with which you are concerned. I don't see any prohibition on accepting donations pending the IRS determination.