Joined: 16 Apr 2013
Total posts: 1
|Posted: Thu Apr 18, 2013 11:12 am
Post subject: Third party fundraiser event to benefit two groups ?s!
I am a volunteer with a non-profit group. I mainly do web based stuff, internet things and advertising (anything that is FREE).
There are a couple of local dog lovers who want to put on a a fundraising event (Doggie Olympics). They want this event to be a fundraiser for BOTH us and another animal group in town. Both have 501c3 status. The hosts do not, they are just individuals.
I am trying to think of the best way to collect money. They are already getting sponsorship from various local businesses. Currently, since I created the event's website for advertising, I also put our rescue's PayPal link as the donation button, only because I have access to all that stuff myself. It's just easier.
In indicated next to the button that the account is for our group, but funds will be equally divided between group1 and group2. I got group2 is OK with this.
The hosts of the event could use their own personal PayPal accounts if this just seems too sticky, but then the big donors would not receive that tax advantage like they do with our non-profit link.
Do you see any problems with this idea? I am leaving all the funds sitting in PayPal until the event is over - that way nothing gets accidentally spent. I notify the other group of donations ASAP so they can get their own thank you letters out.
(Actually just thought of this, each business donor will be getting TWO letters one from us and one from the other group, which could look like they donated twice.)
Will this affect my rescue's tax stuff if they generated X donations but then had to turn around and write the other group their cut of the proceeds. If we happen to get more cash donations than PayPal donations then the PayPal money will sit where it is and we'll just get the remainder of our half in cash form So no complications that I foresee in that case.
Also, a few people have written checks out to the "Doggie Olympics." The checks are in the host's possession. How can one even cash a check when the Olympics only exist in concept - not an account?
Also, looking for other ways to collect tax deductible donations. I am thinking one of the groups has to be associated, hence we should keep the current system in place.
Ideas? Advice? Note I am not involved with the tax related stuff, but I will pass the info on to that person.