Legal Question in Business Law in Indiana

Fundraising Business

Hi, my friend and I are interested in

starting a business that raises

funds for charities and nonprofit

orgs. I have heard that only 30% of

the proceeds need to go to the

charity, is that true, if not what is

the correct percentage? Could I

create an LLC to do this? Any other

information you can give me on the

subject would be very much

appreciated.

Thanks,

Andrew


Asked on 11/09/08, 11:49 pm

1 Answer from Attorneys
Burton Padove Indiana and Illinois Lawyer, Burton A. Padove

Re: Fundraising Business

To my knowledge, there is no percentage. However, there are disclosures that need to be made so that the contributor and public know that the entire contributin is not going to the charity. An LLC can be used.

There are very strict requirements for registration with the Attorney General, as well as the Secretary of State. along with fees, and very specific records need to be kept about the fundraising efforts for each client.

You will defiantely need an attorney to guide you through this. Feel free to contact me.

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Answered on 11/10/08, 2:36 pm


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