Fundraising for Nonprofit vs. Non-Nonprofit Organizations

[deidrejo]

I was just reading the last post. The one reply siad that fundraisers need to be for any organization that is nonproift. I was skimming through other threads and they had tons if lists for "organizations" other than nonprofit. There was one lady who held a fundraiser for her friend who was looking to help with adoptions cots. There were other fudnraisers that were helping victims of house fires.

So, here's my question. Are they required to enter a tax-exempt number or anything? Does the mother who is hosting a fundraiser for her adoption costs need to apply for any type of tax-exempt status? Or, like other posts have said, there just needs to be a bank account in the name of "Jane's Adoption Fund" and afterwards the account is closed after the fundraiser?

I know it seems like a lot of info and questions, but I just want to make sure I know where we stand on fundraiser that aren't for the Boy or Girl scouts.

 

[Admin Greg]

As far as I know, fundraisers do not necessarily need to be for a nonprofit organization. However, if the fundraiser is for an individual or a specific cause, it is important to make sure that the funds are being used for the intended purpose and that there is transparency in how the money is being handled. This could include having a separate bank account for the fundraiser, keeping records of expenses and donations, and being open to answering questions from donors. As for tax-exempt status, that would depend on the specific laws and regulations in your area. It might be a good idea to consult with a legal or financial advisor to ensure that everything is being done properly.

 

[sharalam]

Hello there,Thank you for bringing up this important topic. As a Pampered Chef consultant, I have had the opportunity to work with both nonprofit and non-nonprofit organizations for fundraising events. While it is true that fundraisers typically benefit nonprofit organizations, there are also many opportunities to support individuals or causes that are not officially registered as tax-exempt.In these cases, the individual or group hosting the fundraiser is responsible for following any local laws or regulations regarding fundraising and taxes. They may need to obtain a permit or license, depending on the type of fundraiser and the amount of money being raised. It is always a good idea to research and consult with local authorities to ensure compliance.In terms of tax-exempt status, it is not necessary for a fundraiser to have a tax-exempt number if they are not a registered nonprofit organization. However, it is important to keep accurate records of all funds raised and expenses incurred, as this information may be needed for tax purposes.If an individual is hosting a fundraiser for personal reasons, such as adoption costs, they may choose to open a separate bank account in the name of their cause. This can help keep track of donations and expenses, and make it easier to close the account once the fundraiser is over.I hope this helps clarify any questions you may have about fundraising for non-nonprofit organizations. As always, it is important to do your own research and consult with local authorities to ensure compliance with laws and regulations. Thank you for supporting fundraising efforts and making a positive impact in your community. Happy fundraising!