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  • 1.  Fundraising initiative for University Advancement?

    Posted 10-26-2023 02:18 PM

    Hello,

    I received notice from a member of our public health faculty that they are planning a service-learning trip to Jamaica next summer. They will need to fundraise to go and raise a fair amount of money ($5000-10,000). They are in the process of planning a 5 K run to raise the funds. 

    I wanted to see what rules are in place for this type of fundraising as far as University Advancement's involvement and counting the proceeds as charitable revenue.  

    Thank you!

    Jeff



    ------------------------------
    Jeffrey Goldman
    Gwynedd Mercy University
    goldman.j@gmercyu.edu
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  • 2.  RE: Fundraising initiative for University Advancement?

    Posted 10-26-2023 02:20 PM

    Hi Jeff,

     

    If the 5K is handled by a third party, such as RunSignUp, you will only get the check from the 3rd party and won't have to deal with the registration plus donation piece. In my limited experience with this, it's tons simpler than the university taking on the tracking of everything.

     

    Heidi

     

    Heidi Findlay

    Senior Gifts Manager

    Rollins College

     

     






  • 3.  RE: Fundraising initiative for University Advancement?

    Posted 10-26-2023 02:32 PM
    The first issue is that any outside group wishing to solicit for any reason should follow your third-party fundraising policy and guidelines. These usually have an approval process and clearance to ensure they are not soliciting alumni and donors currently being solicited for other purposes.

    The other reason for such a policy is to ensure these groups do not promise tax deductions when none are possible. And that is the case here. Per the IRS, you cannot raise funds and call them deductible if they are for a specific group of people to participate in a specific program or event. These laws go back decades and surfaced first when a group wanted to raise money to participate in a mission trip.

    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






  • 4.  RE: Fundraising initiative for University Advancement?

    Posted 10-27-2023 08:31 AM

    @John Taylor

    Does this IRS rule apply if the donated funds are going to be used for educational program support (to purchase supplies for a department, for example.)

    Thank you,



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    Emily Savino
    San Jacinto College Foundation
    emily.savino@sjcd.edu
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  • 5.  RE: Fundraising initiative for University Advancement?

    Posted 10-27-2023 08:36 AM
    Well, that was not what the original question was about.

    But sure, groups can help raise unrestricted money to support the institutional mission. However, that still does not eliminate the need for the institution to approve and coordinate those fundraising activities.

    Further, prospective donors need to understand what they are being solicited for. Their receipts, processed through your advancement office (NOT by the third party) must reflect that designation.

    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