Distributing Raised Funds
March 6, 2014 4:31 PM Subscribe
In the USA, are we required by the IRS to distribute funds raised for a non-profit's group trip equally among all participants?
posted by Joey Michaels to Work & Money (12 answers total) 1 user marked this as a favorite
We're in the process of planning and funding a trip to Europe for a group of our students. Fundraising is in process.
Some of our students' families can pay out of pocket for the whole trip no problem. For some of our other students, raised funds could make a difference between whether they can go at all or not.
We have a policy that all raised funds be distributed equally among all trip participants. According to our money dude, this is an IRS policy.
While I recognize this is not going to always be the case, the parents of the "haves" came to me en masse and asked if they could waive accepting funds so that the "have not" kids could better afford the trip. The prevailing sentiment is that its silly that they should accept money when they can well afford the trip without help.
Our money dude has said this is absolutely impossible. They all must accept the same amount of money, again citing IRS policy.
Not that I don't trust him, but I dove into IRS rules on fundraising and can't for the life of me find anything that supports this position. However, I also admit that reading IRS documents makes my eyes roll into the back of my head so I'm not, perhaps, the best person for this research.
Is there anyone out there who can tell me definitively whether this equal-distribution-of-funds-no-matter-what thing is an actual IRS policy and, if so, what document I should have read to determine this?