Legal Question in Business Law in California
Non-Profit Donation Rules
My husband is the Treasurer of a fraternal organization. He is planning a fund-raising event for lodges in Mississippi and Louisiana. In advertising the event, it will be mentioned that other organizations, i.e. Red Cross will also be receiving a portion of the funds raised. Are there any rules about how the money is disbursed? Thank you for your help.
2 Answers from Attorneys
Re: Non-Profit Donation Rules
The Red Cross (and other organizations to be benefitted) engage in joint fund-raising activities such as you describe all the time.
These charities have their own sets of rules that must be followed before they allow the use of their name; these rules vary from situation to situation and the best, perhaps the only way to find out is to contact each organization directly and give their representative a brief description of the fundraising activity proposed.
What I think you will find out is that the big-name charities will expect around fifty percent of the funds raised, but that's a recollection based on some limited experiences several years ago.
Re: Non-Profit Donation Rules
Of course. The entire process is regulated by state and federal laws carrying penalties for non-compliance, plus the various organizations have their own rules and policies requiring compliance to avoid litigation. This question implies a level of ignorance of the rules that could be costly. Contact experienced local counsel for advice on specifics, or possibly your fraternal organization has a national legal office to help.
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