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Who should be able to use an Instituions 501c3 status letter and GIK letter for volunteering their time to fundraise

  • 1.  Who should be able to use an Instituions 501c3 status letter and GIK letter for volunteering their time to fundraise

    Posted 03-04-2024 01:19 PM

    Hi all,

    We have a parent association that is asking us to share a 501c3 status letter to seek donations for an upcoming event. Do you typically allow others(non-employees of Institutions such as parents or alumni) to have this letter? I feel a policy should be written about this or a form that members who do the fundraising around this should sign stating what they are using the letter for and during what timeframe.

    I am sure many encounter this and wonder what others do.

    In addition, the parents were asking for those who volunteer their time and money toward their for the event if a gift in kind could be offered.  I understand the money aspect, if a parent donates $500 or purchases a gift card and just doesn't want this to be refunded back, then it could be a GIK, but what about those who volunteered their time in general being on the parents association and going out fundraising. Jsut curious how others handle this.

    Thanks,

    Anna



    ------------------------------
    Anna Simons
    The Community Solution Education System
    asimons@tcsedsystem.edu
    ------------------------------


  • 2.  RE: Who should be able to use an Instituions 501c3 status letter and GIK letter for volunteering their time to fundraise

    Posted 03-04-2024 01:38 PM
    This is a legal matter, Anna. You cannot "share" your 501c3 status. Only you can use your determination letter to raise funds.

    If the parent association has an independent exemption and is registered as a supporting organization, they can raise funds in their name on your behalf.

    If they have no legal status, you and Counsel need to determine what they can do - or not do.

    Donations of service or time are never tax-deductible per IRS Publication 526.

    John

    John H. Taylor, Principal
    John H. Taylor Consulting, LLC
    2604 Sevier Street
    Durham, NC     27705

    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987




    Original Message


  • 3.  RE: Who should be able to use an Instituions 501c3 status letter and GIK letter for volunteering their time to fundraise

    Posted 03-05-2024 02:54 PM
    Hi Anna,

    I think you need to clarify what the ask is. Your status as a nonprofit is a matter of public record. Anyone can look that up, and even download a copy of your determination letter from the IRS. If you're being asked to provide blanks of your gift acknowledgement, that should be a non-starter. In the past we've seen well-meaning folks setting up peer-to-peer fundraisers using some kind of documentation from the charity without the charity knowing the purpose. These situations should be avoided!

    With regards to what types of contributions qualify for a tax deduction, donations of time and donations of service are not tax-deductible according to the IRS. 


    Thank you,
    Isaac Shalev
    Data Strategy Expert
    Sage70, Inc.
    (917) 859-0151
    isaac@sage70.com

    Schedule a 30-minute consultation now:




    Original Message


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