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  • 1.  Student fundraiser on outreach platform

    Posted 09-27-2022 04:54 PM
    We have begun to work with a company to do fundraising through an outreach platform for student groups like athletics or music ensembles.  The way that the platform works is that students are asked to help fundraise for their team or ensemble by entering contact information for friends and family into a portal, which then sends our College-approved solicitation language to these friends and family via text or email.  All funds raised go to the program for which the fundraising campaign was created (ie, it isn't earmarked for any particular student).

    We're currently in a campaign to raise money for a music ensemble's tour costs, with the idea being that all funds raised will reduce the total amount that is due from all students on the trip. We had success in using this platform on a past sports campaign, but for this campaign, we've had a very small percentage of the student musicians participate (ie by submitting at least one person's contact information to be contacted for the fundraiser).  As a result, our program coordinator is wondering whether the funds raised can be distributed evenly across the total amount due only for the students who participated in the campaign, not across the entire ensemble who didn't engage in the campaign.  So regardless of how much each student raised or whether their contacts donated any funds at all, any student who at least participated by submitting a contact, would see their travel costs reduced by the same amount.

    That suggestion feels problematic to me; I'm wondering how this resonates with others?

    Thanks!

    ------------------------------
    Gwen Donev
    Director of Advancement Services
    Gustavus Adolphus College
    gwendonev@GUSTAVUS.EDU
    ------------------------------


  • 2.  RE: Student fundraiser on outreach platform

    Posted 09-27-2022 11:54 PM
    None of the money raised is deductible or countable if it benefits only a select group of students for a specific event or trip.  This is a precise example of what the IRS says is not in-keeping with their rules on donor control and individual benefits.  Those rules site the example of funds being raised for students going on a certain mission trip.  These are not deductible or countable gifts.

    John

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987






  • 3.  RE: Student fundraiser on outreach platform

    Posted 09-28-2022 12:01 AM
    Cite, not site :-)

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987







  • 4.  RE: Student fundraiser on outreach platform

    Posted 09-28-2022 03:06 PM

    We're running into a similar issue.  Several of our athletic groups are using eTeamSponsor or Front Rush for fundraising campaigns where the athletes provide contact information and the vendor does everything else, including tax receipts. The vendor keeps a percentage of the funds raised and sends a check for one lump sum to the athletic coach.  It is my understanding there is no contract between the vendor and our institution indicating they are acting on our behalf.

     

    Sorry, but I have several questions.

     

    1. Is it considered "acting on our behalf" if the coach set up the online campaign on their platform, but there is no contract?  Is it considered "acting on our behalf" due to the receipt letter sent out by the vendor stating the transaction was processed  "at the direction of" our institution?
    2. Are these gifts deductible since they're not for a specific event? We actually don't know the purpose of each athletic fundraiser as we are not informed, nor see the solicitation.
    3. Would they be deductible if they were raising funds for equipment? Or championship game travel? Or championship rings for the team?
    4. We have no record of the gifts, nor donors. Are these gifts to our institution or to the vendor as they take a fee and send the coach a check for the remaining amount?
    5. We have received a request to verify one of the donations for a matching gift. I cannot verify the gift as there is no record of it in our system.  The coach indicated the vendor can verify it was received. Would the match be for a gift received by our institution or the vendor?  It's a substantial amount so they would like to receive it.  I'm not even quite sure how to process a matching gift for a gift that is not recorded in our system.

     

    Below is a copy of the receipt sent by the vendor to the donor.

    [[DONOR_FNAME]],

    Thanks for your generous contribution of [[GIFT_AMOUNT]] to [[INSTITUTION]] Men's Basketball.

    Your contribution will make a big impact and is greatly appreciated by [[ATHLETE_FNAME]] [[ATHLETE_LNAME]] and everyone on the team!

    Your transaction was securely processed by Authorize.net at the direction of [[INSTITUTION]] Men's Basketball.

    The charge will appear on your credit or debit card statement as "Reaching Our Goal".

    If you have any questions regarding this transaction, please reply to support@frontrushfundraising.com.

    Thanks again for your support!

    COACH NAME, Head Coach

    [[INSTITUTION]] Men's Basketball.

     

    Karen Dreessen

    Advancement Services Manager

    _____

     

    Morningside University

    1501 Morningside Ave., Sioux City, IA 51106

    o: 712-274-5107 |  morningside.edu

     

    The Morningside University experience cultivates a passion for lifelong learning and a dedication to ethical leadership and civic responsibility.

     

    Morningside University does not provide tax, legal or accounting advice. Any information above has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

     

     

     






  • 5.  RE: Student fundraiser on outreach platform

    Posted 09-28-2022 03:23 PM
    The depth and complexities of you questions suggest that a conversation is better suited.  While I encourage others to jump in, I would be happy to chat off-line if you are interested!  Please drop me a line!

    John

    John H. Taylor 
    919.816.5903 (Cell/Text)

    Big Ideas; Small Keyboard