Fundraising

Yes there are stricter limitations on gifts to private foundations. Gifts to public charities by individuals have an annual limit of fifty percent of the donor's adjusted gross income. Gifts to private foundations however place that limit at thirty percent of the donor's adjusted gross income. The figures are somewhat different for corporate donors who can deduct ten percent of their taxable income. If the contribution is capital gain property rather than cash, the limitation is then thirty percent for public charities and twenty percent for foundations. The Iowa Principles and Practices for Charitable Nonprofit Excellence states that "Charitable nonprofits must be aware of and comply with Internal Revenue Code provisions (see e.g. I.R.C. section 170)" (VIII E 2). This is to make sure inaccurate information about gifts is not passed on to donors. A good source for these rules is IRS Publication 526 Charitable Contributions

The cause selected should be in line with the company’s corporate goals. It is not necessary that the target audience for the company’s product be the primary beneficiary of the cause, but a sincere link should exist between the company's business goals and the cause to which it commits itself. A company should first select a cause then choose the charities with which it will work. Partnering with charities is essential, but over-dependence can hurt the program’s development. Financial contributions are an important part of any cause program, but a successful cause program does not always require only donations of cash. Commitment of various other resources such as professional skills, technical knowledge, advertising, and equipment are also important. A company should communicate its involvement in a cause program through every possible channel. Programs in which customers can participate and promote informally are more effective.

A separate acknowledgement may be provided for each single contribution of $250 or more, or one acknowledgement, such as an annual summary, may be used to substantiate several single contributions of $250 or more. There are no IRS forms for the acknowledgement. Letters, postcards, or computer-generated forms are acceptable. An organization can provide either a paper copy of the acknowledgment to the donor, or the organization can provide the acknowledgement electronically, such as an e-mail addressed to the donor. It is the donor's responsibility to obtain a written acknowledgement from the recipient organization. Written statements should contain the following information: 1. the name of the recipient organization; 2. the amount of cash contributed by the donor; 3. a description (but not the value) of non-cash contributions; and 4. a. either a statement that no goods or services were provided by the organization in return for the contribution, or b. a description and good faith estimate of the value of goods or services that an organization provided in return for the contribution (see information on quid pro quo contributions below). Note: additional information is required if the goods or services donated were provided in return for entirely intangible religious benefits. When a donor makes a single contribution of $250 or more by payroll deduction, the donor may use both of the following documents as written acknowledgement obtained from the recipient organization: 1. A pay stub, Form W-2, Wage and Tax Statement, or other document furnished by the employer that sets forth the amount withheld by the employer and paid to a charitable organization, and 2. a pledge card that includes a statement to the effect that the organization does not provide goods or services in exchange for contributions to the organization by payroll deduction.

No. When one buys a raffle ticket one is buying the chance to win the item up for raffle. Since the fair market value of the chance to win the item up for raffle is equal to the price of the ticket, the transaction is merely a purchase; therefore the purchaser has not made a donation.

The general rule is that unless a tax treaty applies, your donations are only tax deductible if you make your donations to a charitable organization that is created or organized under United States law. There are more complex rules if the gift is made through a private foundation.

Many states, under state solicitation laws, require that the nonprofit organization register with the state before participating in fundraising within the state. In order to assist nonprofit organizations in this registration process the National Association of State Charities Officials and the National Association of Attorneys General have created the Unified Registration Statement (URS). The URS “represents an effort to consolidate the information and data requirements of all states that require registration of nonprofit organizations performing charitable solicitations within their jurisdictions.”