Ok, I am in a organization for college, which we go over seas to provide service to those in need like building them a house, helping them learn english, help feed them, etc. We fundraise so that we can send as many people overseas for weeks at a time to do service. Without any fundraiseing we have to pay $1400 a person to go. This is like the second year of this organization. The president and vice president were saying that we couldn't probably ask for big donations from major companies. They said we aren't like registered or something as a non-profit organization.
If we get any donations from any big companies do we need a certain tax exemption number or something? How can we ensure they get a tax exemption? Are we allowed to get donations and then raffle off or put in like an silent auction? What can we do and cant do to raise money for our organization?
1 Answer from Attorneys
Since you're a student organization, you should check with your college to see who can assist you. There is probably someone who assists student organizations with these kinds of activities. Your organization is not automatically exempt, even if your college is non-profit. However, if your organization is a chapter of a national organization, you should contact the national office, because you might already be exempt under their tax ID number.
Otherwise, contact the IRS at 1-800-829-3676 and ask for Publication 557, �Tax-Exempt Status For Your Organization," and the manual will explain how to get tax exempt status as a 501(c)(3) organization, which you will need if you intend to do any fundraising or receive any donations at all.
See also: http://www.irs.gov/charities/charitable/article/0,,id=96099,00.html
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