Legal Question in Business Law in Delaware

I work with a non-profit youth football team and I am trying to find ways to fundraise to reduce expense for the kids who sign up and raise additional funds for the org. I wanted to use a fundraising service that allows each player to have their own website, which request donations to the team, which they can link to friends and family via social media. If a donation is made, we send the donator a receipt for a tax-free donation. The donations are organized in the name of player to assist with their fees, roughly $250, and any funds in addition then go to general org expenses afterward. Is there a conflict in this being tax deductible because it is being used to partially assists in the child�s registration fees? I looked at this as if people were contributing to a scholarship. Here is a link to the service we wish to use for reference: http://www.notafundraiser.com/#

Is there any any particular verbiage that we need to place in our funds request to assure we do not break any laws or mislead people? Please advise I want to do this correctly


Asked on 3/16/15, 3:34 pm

1 Answer from Attorneys

I am assuming the donations are sent directly to the team, not the individual player. The team would have to have applied for and received 501(c)(3) status from the IRS for contributions to be tax deductible. Assuming the team has been granted tax exempt status from the IRS, the donations should be tax deductible because the donor is not receiving anything of value. If the team has not applied for and received tax exempt status, you still could solicit donations but could not say that they are tax deductible.

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Answered on 3/17/15, 6:15 am


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