Legal Question in Business Law in California

I have a question regarding donations. Is legal for a for profit enterprise to accept donations ? Could you partner with a school and give them 90% of the donations and keep 10% for the work done to received the donations? I would assume individuals donation must be made aware that 90% of money donated goes directly to the school? What legal steps should I take to ensure no laws are broken?


Asked on 7/12/10, 9:46 am

2 Answers from Attorneys
Edward Hoffman Law Offices of Edward A. Hoffman

There are strict laws which govern for-profit fund-raising companies that act on behalf of non-profit organizations. If you want to get into this line of work you should have a lawyer help you form the company and guide you from there on.

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Answered on 7/12/10, 12:56 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

The answer to your question as posed in your second sentence is yes. A for-profit organization can accept a gift. However, the question as asked does not accurately describe the activity you go on to describe, which deals with soliciting donations for a charitable purpose and a splitting arrangement. The answer to that is as Mr. Hoffman states. There is a huge difference between soliciting donations and accepting gifts. Are you really in Cuba City, Wisconsin?

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Answered on 7/13/10, 10:10 am


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