Greek Chapter Fund Raiser

mholmansr · #1 10-10-2004, 01:57 AM

I've run across another Fund Raiser idea, where chapters can bring in income.

Click on link below:

Greek Chapter Fund Raiser Link

ladygreek · #2 10-10-2004, 12:51 PM

Be careful with these types of companies and make sure there is no conflict with the receiving group's IRS status and the marketing of products.

mholmansr · #3 10-10-2004, 07:25 PM

Quote:

Originally posted by ladygreek
Be careful with these types of companies and make sure there is no conflict with the receiving group's IRS status and the marketing of products.

Definitely! I looked into this as well. They've setup the same system with various Groups. The first thing that is addressed with Non-Profits is the Tax Status Issue and Distributions being donations.

Its definitely something to look at in the beginning.

The info provided on the Tax Status (dependent on if one individual chapter person is used as the point of contact or signup is done under the Non Profit Group as a whole) is as follows:

"The group can elect a specific individual (which may change from year to year, as with school parent booster clubs) who receives the commission checks, and then makes a tax deductible donation to the group every month in the full amount of the commission check. In this case, that individual is going to get a 1099 form from Cognigen (if the amount received is over $600), and that person will have tax liabilities on the year's total commissions. Yes, the individual can write-off his monthly donations to the group, but even so, that's probably not a dollar-for-dollar write-off. However, that individual may be more than willing to absorb the minor tax liability and consider it as a "contribution" to the group, in lieu of having to staff bake sales, supervise car washes, etc.

Cognigen would also be willing to create a contract between Cognigen and the non-profit group, stating that Cognigen would give a monthly "donation" to the non-profit group, commensurate with the amount of customer usage."

A Sample Church Youth Group's Web Page is in the link below (The whole concept is really web based with user going to your group's personalized website and thus generating your funding):

Sample Church Youth Group Fund Raising Website

ladygreek · #4 10-10-2004, 11:06 PM

But that individual cannot make a tax-deductible cotribution to a 501(c)(7) which is what the BGLO's are (unless Iota is incorporated differently.) Does Iota have a 501(c)(3) foundation? If so the donations would have to be made into it as a conduit with the foundation then funneling it back into the chapter. And there are regulations for a 501(c)(3) acting as a conduit, so that would have to researched as well.

But all in all, I am all in favor of looking into any ideas that will raise monies for a chapter to do it's good works.

mholmansr · #5 10-11-2004, 12:38 AM

Quote:

Originally posted by ladygreek
But that individual cannot make a tax-deductible cotribution to a 501(c)(7) which is what the BGLO's are (unless Iota is incorporated differently.) Does Iota have a 501(c)(3) foundation? If so the donations would have to be made into it as a conduit with the foundation then funneling it back into the chapter. And there are regulations for a 501(c)(3) acting as a conduit, so that would have to researched as well.

But all in all, I am all in favor of looking into any ideas that will raise monies for a chapter to do it's good works.

HI,

The Individual can in fact make tax deductible contributions to a 501(c)7 which most BGLO's are established granted a fund is setup exclusively for this purpose, the same as it would if it were in fact a 501(c)3.

From the IRS website using the below link you will find the "Foot Note 2" on the bottom of Page 61 of IRS Publication 557 "Tax Exempt Status For Your Organization", additionally you will find on Page 49 the 501c7 for Charitble Orgs as well more info on 501c10's Fraternal Orgs on Page 50.

We do have Iota Foundation used for donations. Which also gives another, though not the only, conduit as mentioned.

Like You, I'm interested and in favor of looking for ideas that will raise funds for our organizations.

Link below:

IRS Publication 557 - Tax Exempt Status For Your Organization

In Greekdom

ladygreek · #6 10-11-2004, 01:08 PM

And that fund must meet the requirements of a 501(c)(3). So again the tax-deductible contribution is made to a separate entity--the fund--not the chapter, and reporting is done separately on that fund.

But if you already have a foundation, then there is probably no need for a chapter to set up a separate 501(c)(3) entity/fund, and incur that administrative headache.

mholmansr · #7 10-11-2004, 03:26 PM

Quote:

Originally posted by ladygreek
And that fund must meet the requirements of a 501(c)(3). So again the tax-deductible contribution is made to a separate entity--the fund--not the chapter, and reporting is done separately on that fund.

Yes that is correct, the obligation is put on the type of fund as opposed to having to change your already established 501c , the funds just are seperated as some chapters may have more than one a/c for specific purposes

ladygreek · #8 10-11-2004, 05:08 PM

Quote:

Originally posted by mholmansr
Yes that is correct, the obligation is put on the type of fund as opposed to having to change your already established 501c , the funds just are seperated as some chapters may have more than one a/c for specific purposes

I think we are on the same track here, but just to make sure, we aren't talking about a restricted account in a chapter. We are talking about a fund that is set up as its own 501(c)(3) or as a restricted account under a 501(c)(3) like your foundation--right?

mholmansr · #9 10-11-2004, 06:40 PM

Quote:

Originally posted by ladygreek
I think we are on the same track here, but just to make sure, we aren't talking about a restricted account in a chapter. We are talking about a fund that is set up as its own 501(c)(3) or as a restricted account under a 501(c)(3) like your foundation--right?

You are correct. It would be a seperate fund with it's own 501(c)(3) type setup or using a foundation with a 501(c)(3)

ladygreek · #10 10-12-2004, 12:00 AM

Quote:

Originally posted by mholmansr
You are correct. It would be a seperate fund with it's own 501(c)(3) type setup or using a foundation with a 501(c)(3)

My chapter has set up a scholarship endowment fund (which I chair) within the Delta Research and Educational Foundation. With DREF having staff it makes it so easy on us since it manages the investments, and increases our return since our monies are part of a larger principle. We have raised over $50,000 in the 10 months since we began our campaign just from member contributions. Our 4 year goal is to be able to give at least $10,000 in scholarships each year from the interest, as opposed to having a myriad of fundraisers each year.

Just an idea to pass along. And if anyone wants info on this feel free to PM or email me.

mholmansr · #11 10-12-2004, 05:39 AM

Quote:

Originally posted by ladygreek
My chapter has set up a scholarship endowment fund (which I chair) within the Delta Research and Educational Foundation. With DREF having staff it makes it so easy on us since it manages the investments, and increases our return since our monies are part of a larger principle. We have raised over $50,000 in the 10 months since we began our campaign just from member contributions. Our 4 year goal is to be able to give at least $10,000 in scholarships each year from the interest, as opposed to having a myriad of fundraisers each year.

Just an idea to pass along. And if anyone wants info on this feel free to PM or email me.

That's a great idea and phenominal to be able to grant scholarships on just the interest leaving the principle in tact. I think that alone is awesome!