alumni fundraising

[tauchick96]

Hello Fellow Greeks,

Here in hopes of some new fundraising ideas. I'm actually an alum, and we've just started organizing fundraising committees for our philanthropy and other organizations we love. Because of the distance that a lot of us live from each other, things like bake sales, car washes etc....don't always turn out so well. Has anyone had an event where distance wasn't a major factor and participation and results were good?

Right now I'm heading up the American Cancer Society group and also The Humane Society. A lot of us participate in local walks, but we were told the ACS is no longer doing Daffodil Days?!

Thanks for any ideas and hope everyone is enjoying the New Year!

[Kevin]

Have you set up a 501(c)(3) foundation? It can really help you land larger donations if they're tax deductible.

[tauchick96]

No, sounds like I should pass that idea along though. Thanks.

[Kevin]

A pretty ideal structure would be to have your alumni association go ahead and incorporate as a not-for-profit, probably a 501(c)(10), have a separate house corporation with a similar tax status to that. If your active chapter is part of a national organization, they'll fall under that umbrella. You'd then found a 501(c)(3) foundation for tax deductible giving.

The difference between the (c)(10) and the (c)(3) is that donations to the (c)(3) are tax deducitble whereas with the (c)(10), they are not.

The (c)(3) will have a restricted purpose for its spending, the (c)(10) can do mostly what it wants (consult a legal and/or tax professional before you do any of this, I would strongly recommend going ahead and spending the money to have your first fund raiser pay for an attorney to set all of this up for you).

One thing you should ask them about is using the (c)(3) to raise money for a house. Your (c)(3) could actually loan your house corporation money to build a house and directly fund the parts of the house, e.g., study rooms, but the interest rate and loan would have to be similar to something you'd do in an arm's length transaction.

Again, this is all very general information, but enough to get you started on knowing a little something when you do finally retain a professional. Do NOT attempt to do this on your own as it will likely lead to a lot of disappointment and frustration. Also, do not start getting EINs and bank accounts and moving any money around until the IRS has signed off on everything. Getting approved for a 501(c)(3) which has already been in operation and not paying taxes is much more difficult.