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    ruthie200's Avatar
    ruthie200 Posts: 1, Reputation: 1
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    #1

    Dec 2, 2011, 07:13 AM
    501 c3 rules?
    We are a 501c3 for a charitable organization. We would like to have a contest for our 2012 logo and have a $100 gift card for a prize. We voted in our last meeting to do this every year. However, we have someone in our orgaization that says we have to use all the money to make money, (i.e. Holding fundraisers is the only way you can spend money to make money.) They say we have to do this because we have told everyone that our money goes to buy needed children toys. To tell you the truth, I don't remember anything anywhere that says we are using ALL the money to buy needy children toys.

    This is what our oranization is about, what about advertising and in the future electricity or other cost to run this organization?
    excon's Avatar
    excon Posts: 21,482, Reputation: 2992
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    #2

    Dec 2, 2011, 07:26 AM
    Quote Originally Posted by ruthie200 View Post
    This is what our oranization is about, what about advertising and in the future electricity or other cost to run this organization?
    Hello r:

    Well, of course, you ARE allowed to spend money to raise money, otherwise you couldn't have a building to DO your fundraising...

    The rules about 501c3's are very detailed. THIS is not the place to learn how to operate your charity within the law.. You need a CPA. THIS is exactly what HE does. If he's WRONG, he gets into trouble - NOT you. That's what the "C" is for in his designation. It protects you. Not only that, he can do your books too. Who's doing 'em now?

    excon

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