Legal Question in Business Law in Illinois

If I wanted to create a site for people to donate to my cause (not a charitable org or 503c), are there any legal issues with this? It would not be portrayed as tax free or tax deferred, and I understand income tax would have to be paid.

I'm just wondering if there is any issue with the legality of a person or coalition of people, soliciting donations for any reason (but not a 503c or recognized charity).


Asked on 8/09/10, 9:03 am

2 Answers from Attorneys
Thomas Moens Moens Law Offices, Chartered

Sure, you can ask people to give you money. I would suggest making it clear that the funds sent are not tax-deductable, and be very clear and honest about the purpose of the funds to avoid any claims of fraud. And you are correct, you would need to pay income tax on any funds received.

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Answered on 8/16/10, 8:30 am
Burton Padove Indiana and Illinois Lawyer, Burton A. Padove

Tom is absolutely correct-full disclosure!!!

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Answered on 8/17/10, 7:24 pm


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