Organizing a fundraising event for your non-profit organization can be a great way to raise money for your cause. However, it is essential to make sure that your event is compliant with state and local regulations. In Gulfport, Mississippi, there are five types of fundraising laws that all charitable organizations should be aware of when it comes to raising money. The first step in ensuring compliance is to obtain a 501 (c) () determination from the Internal Revenue Service (IRS).
This means that your non-profit organization has been approved by the IRS as a tax-exempt charitable organization. Obtaining this status allows donors to deduct donations for federal income tax purposes, and many states also allow donors to deduct charitable donations for state income tax purposes. It is also important to check if your state allows non-profit charitable organizations to organize raffles, auctions and other games of chance. Currently, 41 states plus the District of Columbia require a state license for charitable gaming events.
To ensure that donors can deduct contributions made to a fundraising event, one or more qualifying charities must organize the event, so that the taxpayer can document that the donation was made to a qualified charitable donor. In addition to obtaining the necessary licenses and preparing the necessary health and safety forms, there are other ways to ensure compliance with local laws. Consider how you could raise additional funds on the same day, whether through an on-site food stand or through branded products. You could also start a peer-to-peer competition before the event, in which the person who earns the least will have to do the first shift in the tank.
If you host your event in person, you'll have additional opportunities to raise money by selling products, food or beverages, informing your supporters about your recurring giving program, strengthening relationships with donors, and more. Gather these in-kind resources early in the winter season to ensure adequate resources for your beneficiaries when the colder temperatures arrive in December and January. You could also organize a speed-dating fundraising event to break the ice among singles in your community and create a welcoming environment for connection. Finally, it is important to be aware of any potential unintended consequences of fundraising events. Even an auction that raises money for a charitable cause can have unintended consequences unless you are familiar with the rules. To help you comply with these regulations and make sure your fundraising event is successful, it is essential to understand all five types of fundraising laws for non-profit organizations in Gulfport, Mississippi.