Article Archives >> To the Point
Our for-profit organization would like to host an event to raise funds for a charity. What is the legal percentage/portion of the proceeds that should be donated to the organization for it to be considered a charitable event?
I am not aware of any specific percentage/portion of sales or proceeds that must be paid to a charity to consider it a “charitable event.” The key issue usually is whether there are sales based on a “charitable appeal,” urging patrons to buy because a portion of the proceeds will be paid to a charity. When you make this appeal you probably become a “commercial co-venturer.”
You ought to be sure that the charity is registered to solicit charitable funds (or have funds solicited on its behalf) if required in any state in which you will make the charitable appeal. 39 states plus the District of Columbia have such statutes. You should also check the law of those states to see whether you have to register as a charitable co-venturer. A few states require it. Several states require a written agreement with the charity and a few of them require it be filed for public view. About 10 states require disclosure of the percentage of funds that will go to charity and the detail of how the charity will receive the money.
9/11/2009
Article Archives >> To the Point
An Introduction to the Nonprofit Sector: A Practical Approach for the 21st Century
By Gary M. Grobman |
Have a question?
If you can't find your answer, submit a question and Don will pick one question a week to answer online and to include in our weekly e-mail notice.
Other ways to
find answers:
Talk to the Editor
Next Conference Call:
Tuesday, November 24, 2009
Participate
in this bi-monthly telephone seminar conference call and ask your questions directly to Editor
Don Kramer.
Access the entire site
($9.95/24 hours, $17.95/3 months).
Nonprofit Issues
Live
Full Day Program
A well-received full-day
program that covers the current hottest topics in nonprofit
law. Qualifies in Pennsylvania
for Continuing Education credits.
Speaking Engagements
Don is available for programs and speaking engagements ranging from
a one-hour presentation to a full-day primer on nonprofit law. Contact
us if you are interested in having him speak at your program.