Fundraiser Cap for Non-Profit Organizations.

[SkipRock]

Does anyone know anything about any limits on the amount of money that non-profit organizations, like fraternites/ sororities can fundraise?

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David Treat
Lambda Chi Alpha
University of Nebraska at Omaha

[33girl]

I've never heard of a cap.

Incidentally - I thought that fraternities and sororites were not-for-profit not non profit. NFP means you don't try to make a profit but if you do it's OK. Non means you can't keep any of the $$$ you raise for anything.

[RTZTAS]

Not for Profit and Non Profit are the same thing. The IRS would be the authority that would set limits on raising funds. If you are a chapter of a national organization, your GLO's national officers and directors will probably have already setup the organization in a manner that would allow any chapter to raise as much funds as they can for a philanthropic endeavor. If you are talking about raising money for chapter funds, that is a different matter altogether. ZTA for example has setup a 503c organization, the ZTA Foundation which has special tax status and accepts donations with donors being able to make tax-deductible contributions. Chapters can raise as much as they can for this organization which supports the Komen Breast Cancer Foundation, another 503c organization. Check the IRS website and your GLO's national office for more information. Chances are if you can raise it, and its for a philanthropic cause, the IRS won't see it as a problem.

[Kevin]

I don't think there's a limit per se.. However a 501c3 company from what I understand does have to spend every dime that it takes in -- on philanthropy/community service type stuff (Scholarship fund!). It's smart to set up a 501c3 corporation seperate from your house's.

I'm not really up-to-date on this stuff we're getting our charter in a few days and this is just one of the MANY things currently on my plate as treasurer.

LHT,
Kevin